How to Terminate a Building Contract
- 1). Write down the reasons for terminating the contract. This not only helps you clear your thoughts and ensure you have legitimate reasons to terminate the contract, but it's also useful if the other party of the contract takes legal measures and you must present your case in court.
- 2). Compare your reasons for terminating with the termination clauses included in the contract. It doesn't matter how valid you feel your grievances are: If they're not included as a valid termination cause in the contract or by the construction contract laws in your jurisdiction, your termination is likely to be considered illegal.
- 3). Request the advice of and support of another member of the project, such as the architect or the chief engineer. This adds validity to your claim that the contract is beyond repair and should be terminated. Under certain contracts, such as contracts set under the American Institute of Architects General Conditions, an owner can't terminate a contract without a written certification from the architect stating there are grounds for termination.
- 4). Give the contractor advance notice of your intention to terminate the contract. Deliver this notice to him either in person or by certified mail. For a contract termination to be valid, the contractor must not only have broken the clauses of the contract but also be unwilling to remedy the situation.
- 5). Enforce the termination of the contract. If the date of termination arrives and the other party has made no effort to redress the situation, take the necessary measures to sever ties. If you're the contractor, take your tools and materials and leave the site. If you're the owner, make arrangements to take over the site and --- if you'd like to continue the project --- bring in a new contractor.