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Contracts & Legal

Termination for Cause

In Plain English

The owner firing the contractor for serious failure to perform their contract obligations.

Definition

Termination for cause is the owner's right to end a contractor's employment on a project due to the contractor's failure to perform, abandonment, insolvency, or other material breach after proper notice and opportunity to cure. It allows the owner to engage another contractor to complete the work at the defaulting contractor's expense. Wrongful termination-for-cause exposes the owner to significant liability.

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