Contractor’s Right to Terminate after Stopping Work Sample Clauses
The "Contractor’s Right to Terminate after Stopping Work" clause allows a contractor to formally end the contract if they have previously stopped work due to specific reasons, such as non-payment or a breach by the client, and the issue remains unresolved after a set period. Typically, this clause outlines the conditions under which the contractor may stop work, the required notice to the client, and the timeframe that must pass before termination is permitted. Its core function is to protect contractors from being indefinitely bound to a project when the client fails to meet essential obligations, providing a clear exit mechanism and encouraging timely resolution of disputes.
Contractor’s Right to Terminate after Stopping Work. After stopping its Work in accordance with Paragraph 5.3.3.1 above, the Contractor may, upon thirty days written notice to the Owner and the Design Professional, terminate this Contract and recover from the Owner payment for all Work executed and any proven loss sustained or incurred upon any plant or any materials, equipment, tools, construction equipment and machinery, and cancellation charges on existing obligations of the Contractor, if the grounds for stopping the Work are not removed.