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Contracts & Legal

Termination for Convenience

In Plain English

The owner ending the contract without the contractor doing anything wrong, with compensation owed for work done.

Definition

Termination for convenience is the owner's right to end a contractor's employment without cause, typically by paying the contractor for all work performed, costs incurred, and an allowance for overhead and profit on work not performed. It gives owners flexibility to terminate projects for business reasons without breach of contract liability. Contractors are entitled to documented costs plus reasonable profit on completed work.

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