Guidelines and Considerations When Terminating Government Contracts

Terminations are the not-so-happy endings to construction contracts. A termination occurs when the owner decides to stop a project before it is complete. This is a right that lies solely with the owner unless otherwise specified in the contract - at best, a contractor can abandon a contract if the owner breaches it. The doctrine of termination has become so pervasive in federal contracting that, even if the contract does not have an express termination clause, courts will read that right into the contract by operation of law. And, commercial contracts often give owners similar rights. This live webinar will help interested parties to navigate the world of termination. It will explore the rights of owners and contractors and the interaction between the law of federal contracts and the law of private commercial contracts.

Learning Objectives:

You will be able to discuss impacts of the termination for convenience clause.

You will be able to identify general contractor-subcontractor relationship.

You will be able to explain terminations for default.

You will be able to review terminations for convenience and the traditional standard.

Agenda

Terminations for Convenience

Impacts of the Termination for Convenience Clause

Limitation on Constructive Terminations for Convenience

General Contractor-Subcontractor Relationship

Wrongful Termination for Convenience

Government Contracts vs. Private Contracts Different Standards

Costs of a Termination for Convenience

Terminations for Default

Background

Grounds for Default Termination

Responding to Cure Notice of Default or Show Cause Notice

Wrongful Default Terminations

Other Defenses to Default Termination

Costs of a Termination for Default

Effect of a Wrongful Default Termination

Procedural and Jurisdictional Issues

Other Government Conduct Limiting the Right to Terminate

Terminations for Convenience and the Traditional Standard

Bad Faith

Abuse of Discretion

Overlap of Bad Faith and Abuse of Discretion

Changed Circumstances Test

Challenging Convenience Terminations on Bad Faith Grounds – Lessons Learned

Challenging Convenience Terminations Based on Abuse of Discretion