Draft Construction Services Agreement in Florida
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Construction Services Agreement
Florida
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Construction Services Agreement
New York
Can a construction services agreement be terminated by the contractor if the owner fails to make payment within the agreed timeframe?
I recently entered into a construction services agreement with a contractor to renovate my commercial property. The agreement stipulates that I will make payments to the contractor within 30 days of receiving an invoice. However, due to financial constraints, I have been unable to make timely payments and have fallen behind on several invoices. I am concerned that the contractor may terminate the agreement and leave the project unfinished if I am unable to catch up on payments. Can the contractor legally terminate the agreement if I fail to make payment within the agreed timeframe?
Arthur S.
Simple answer...Yes. That said, most Owner/Contractor agreements....particularly AIA forms of Owner/Contractor Agreement, empower a contractor to terminate the agreement on written notice following certain work stoppage and cure periods. A more precise answer, in this instance,, would require a review of the relevant provisions of the underlying Owner/Contractor Agreement in question.