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ARTICLE · 18 SEPTEMBER 2024

What Happens After A Termination For Convenience?

The Cromeens Law Firm
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This clause means that the general contractor can terminate the subcontractor at any time for no reason, just because it is convenient to the general contractor. But what happens after a termination for convenience?

United StatesReal Estate and Construction
Karalynn Cromeens
Karalynn Cromeens

Most commercial construction subcontracts have a termination for convenience clause.

This clause means that the general contractor can terminate the subcontractor at any time for no reason, just because it is convenient to the general contractor. But what happens after a termination for convenience?

A termination for convenience clause exists to allow the general contractor to terminate the subcontractor and not be liable for breach of contract. The liability the general contractor would be responsible for breach of contract is the Profit the subcontractor would have made on the job. The termination for convenience clause lets the general contractor terminate the subcontractor without having to pay them the profit they would have made.

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