Become familiar with how termination and suspension of projects fit in the AIA owner-contractor agreement.
Termination is a draconian remedy for any party because the damages “boomerang” upon the party who is legally wrong after it is all sorted out. Because of the risk, lawyers typically bend over backwards to avoid a termination. Often there is a rush to judgment. Care must be taken before a termination is executed. This white paper reviews termination for cause and suspension of work, including damages for contractor’s and owner’s termination.
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