Three and a Half Ways to Prepare for Termination for Convenience

Termination for convenience is a contract clause that should be in every contract.? What do you do as a contractor when you are terminated for convenience can mean full recovery of allowable costs, or a major impact to your profit?? Prepare for termination for convenience with a few simple steps.

First, read the contract immediately.? In fact, when in doubt about anything contractually, read the contract.? Even though you read it before you signed it, you won’t remember all the details of what you signed. ?Termination for convenience is allowable only if you expressly have it provided in your contract.? Be sure you do.? In some cases, we have seen people believe they have the clause in their contract, only to find out that it is the wrong termination for convenience clause to have. ??Be sure it is not a “short form” type of clause if your type of contract does not allow for it.? ?The termination for convenience clause allows the buyer to terminate their contractor for convenience at any time without cause and without liability for damages.? ?There are specific stipulations you must follow in the event of a termination for convenience.

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