Aug 5, 2016
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Difference Contract Termination for Convenience vs Termination for Default Clause
Difference Contract Termination for Convenience vs Termination for Default Clause
Under the FAR termination clauses, it is typically common knowledge that the federal government can terminate your contract for convenience or for default. Specific facts drive the outcome. When considering difference between contract termination for convenience vs termination for default, government contractors should remember two things.
 The government can terminate the contract for…
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Owner terminate contract for cause: Exclude Contractor from site; take over materials/equip & contracts; finish work
Owner suspend/terminate work for cause: lack skill workers; subs not paid; disregard of laws; breaches of contract.
Owner terminate contract for convenience: Contractor stop work; protect/preserve work; end contracts. Contractor paid.
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Contractor terminate contract for cause: Work stopped/not by Contractor; No payment/repeated delays by Owner; 7 days notice