What Is Post-Construction Contract Termination

If you have a construction business where you are consistently signing new contracts, you have probably heard of a post-construction contract termination. When a project is completed, and you have been paid for the work you have done, the contract will come to an end. Every aspect of a contract must be evaluated by yourself, or by a lawyer, ensuring that you will know what is expected of you. Once everything is done and is to the satisfaction of the person you are contracted with, that agreement or contract will come to an end. Let’s discuss what post construction contract termination represents in regard to construction projects and the contracts that are signed by businesses every day.

Overview Of A Typical Construction Contract

This type of contract is just like any other. There will be specific requirements that must be adhered to. The amount of money that will be paid upon completion of the contract will also be stated in the document. If all goes well, and the employer is happy, money will be dispersed and the contract will come to an end. That is typically what it says in a contract, however, there can be variations in the way that contracts can come to their conclusion.

construction contracts

Post Construction Contract Termination

If you have fulfilled everything that is on a contract, and you are to be paid for your services, the business that hired you may actually terminate the contract for one of two reasons. First of all, they were satisfied with the final results and are more than happy to pay you.

The other possibility is that, even though you have completed the contract, they are not satisfied with the quality of the work. When that occurs, you will end up going to court. They may not pay you for anything because they will state it was not done properly. This will likely end up in some form of litigation that could last for months.

People that hire contractors will do this more often than you would think. It is a way of renegotiating the terms of the contract, specifically how much they actually want to pay you. If they can prove that you did not fulfill your part of the contract, and a judge agrees with them, you could end up losing the money and also paying for their court fees. This is a dirty tactic that some businesses will use, and more times than not the contractor will simply take a smaller amount. In most cases, however, those that hire contractors will honor the agreement and will simply pay you for your services.

Most businesses that hire companies are going to be honorable. If you do good work, and they approve of what you have completed, you will be paid as agreed. However, if you ever do encounter a company that terminates your contract after you have completed the work, you now know what to expect when this occurs.

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