Home Q&A Forum Can a construction contractor terminate a construction agreement without cause?
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Commercial Real Estate

Construction Agreement

Texas

Asked on Dec 10, 2024

Can a construction contractor terminate a construction agreement without cause?

I recently entered into a construction agreement with a contractor to renovate my commercial property. However, the contractor has been consistently behind schedule and the quality of work has been subpar. I am concerned about the progress of the project and the contractor's ability to complete it satisfactorily. I would like to know if the contractor has the right to terminate the construction agreement without cause, or if I have any legal recourse to hold them accountable for their performance and potentially terminate the agreement myself.

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Commercial Real Estate

Texas

Answered 553 days ago

Lorraine C.

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Member Since:
October 10, 2024

That situation sounds frustrating, to be sure. The termination rights of both parties should have been clearly defined in the construction agreement. It would be best for you to have an experienced transactional attorney review the contract terms and discuss the issues you are having so that you can receive advice specific to your situation. Regardless, I highly recommend that you document any quality of work or performance issues in writing and with pictures, if applicable. That way, if you do decide to terminate the contract later (with an attorney's guidance), you will have the proof you may need to support your claim.

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