Contractor’s Right to Terminate for Nonpayment Clause Samples
The Contractor’s Right to Terminate for Nonpayment clause gives the contractor the legal ability to end the contract if the client fails to pay as agreed. Typically, this clause outlines specific conditions under which the contractor can terminate, such as a set period of overdue payment or a required notice period before termination. Its core function is to protect the contractor from financial risk by providing a clear remedy if the client does not fulfill their payment obligations.
Contractor’s Right to Terminate for Nonpayment. If the Owner fails to pay the Contractor when payment is due, the Contractor must give written notice of the Contractor's intention to terminate this Contract. If the Owner fails to provide the Contractor payment or written notice of a dispute as to the amount sought by the Contractor within thirty days after receipt of the Contractor's written notice, the Contractor may terminate this Contract. Upon such termination the Owner will pay the Contractor for the Work properly executed to date, and, upon timely claim therefore, for any proven loss sustained or cost incurred upon any materials, equipment, tools, construction equipment and machinery, and cancellation charges on existing obligations of the Contractor.
Contractor’s Right to Terminate for Nonpayment. If the Owner fails to pay the Contractor when payment is due, the Contractor must give written notice of the Contractor's intention to terminate this Contract. If the Owner fails to provide the Contractor payment or written notice of a dispute as to the amount sought by the Contractor within thirty days after receipt of the Contractor's written notice, the Contractor may terminate this Contract. Upon such termination the Owner will pay the Contractor for the Work properly executed to date, and, upon timely claim therefore, for any proven loss sustained or cost incurred upon any materials, equipment, tools, construction equipment and machinery, and cancellation charges on existing obligations of the Contractor. 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.