Termination of the Construction Contract

Resumen del Recurso

Pregunta Respuesta
Why is construction a "unique manufacturing method"? The construction process is complex, involving dozen of entities that may have never before worked together in the same combination on a single project. It involves differing unique sites, innovative designs, changing permutations of subcontractors and suppliers, and new combinations of owners, contractors, and architects. No other manufacturing process works in the same way.
Under what conditions may the contractor consider the contract terminated? When the Owner's Behavior deviates from the Norm. 1: Issuance of an order of a court which requests all work be stopped. 2: An act of government, such as a declaration of national emergency. 3: The architect has not issued a certificate for payment and has not notified the contractor of the reason, or because the owner has not made payment within the agreed time. 4: The owner has failed to furnish to the contractor promptly, upon request, reasonable evidence that financial arrangements have been made to fulfill the owner's obligations. 5: If through no fault of the contractor (or entities), repeated suspensions, delays, or interruptions of the the entire work for the owner's convenience cause delays. 6: If owner or owner's agents such as the Architect, cause the worked to be stopped for 60 consecutive days.
Under what conditions may the owner terminate the contract? If Contractor 1: Repeatedly refuses or fails to supply enough properly skilled workers or proper materials. 2: Fails to make payment to subcontractors for materials or labor. 3: Repeatedly disregards applicable laws, statues, ordinances, codes, rules and regulations or other lawful orders. 4: Otherwise is guilty of substantial breach of provision of the contract documents.
What may the owner do after termination? 1: Exclude the Contractor from the site and take possession of all materials, equipment, tools, and construction equipment and machinery thereon owned by the Contractor. 2: Accept assignment of subcontracts. 3: The owner may undertake to finish the work by whatever reasonable means the owner deems expedient.
What are the legal positions of the architect and surety? Position of the Surety: Given a chance to cure the deficiencies and reinstate the Contractor. If the original Contractor cannot by itself satisfactorily proceed with the work the surety may use its own judgement and exercise its own choice as to method of completing the contract. Position of the Architect: All acts of the Architect must be performed with deliberation and in strict accordance with the owner-architect and construction agreements. Preserve all documentation
Describe the practical considerations of termination. Architects Independent Evaluation of the supposed shortcomings of the Contractor. Protecting and Completing the work. Late Completion means alternate financial arrangements ma have to be provided. . Economic Conservation. Bankrupt Contractor or Owner.
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