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Can. C. Construction Law. 61  \nJournal of the Canadian College of Construction Lawyers  \n2021  \nContract Termination: Considerations in Terminating for Default or for Convenience  \nPaul Ivanoff, Ethan McCarthy a1  \nCopyright © 2021 by Thomson Reuters Canada Limited; Paul Ivanoff, Ethan McCarthy  \nEditor's Note  \nThe authors have presented an excellent current discussion and analysis of the often-perilous exercise of contract termination in construction projects from both the owner and contractor perspective. Their paper covers the legal and practical considerations that need to be critically assessed as part of any termination decision. Their comparison of the convenience and default termination provisions, and their respective pitfalls and advantages, is well articulated and timely especially in light of our court's now-firmly entrenched insistence on good faith and honest dealing by owners and contractors seeking to rely on pertinent termination provisions within their construction contracts.  \n1. INTRODUCTION  \nParties enter into construction contracts with a common goal of building a successful project. Yet industry participants know all too well that hurdles can be encountered during project execution which will challenge the relationship between contracting parties. Many hurdles can be resolved amicably through the mechanisms provided in the contract. However, in certain instances, an owner or contractor may be so dissatisfied with the other party's performance of their contractual obligations that they may view the relationship as unsalvageable and seek to bring it to an end by terminating the construction contract for default. In other circumstances, a party may elect to exercise an express unilateral right to terminate a construction contract for convenience based on its own commercial considerations.  \nThere are multiple factors to consider when contemplating termination and Canadian courts have weighed-in on many of these. The following addresses a number of issues and considerations surrounding contract termination, be it for default or for convenience. Although the rights, remedies and obligations of both parties are unique to each construction contract, the provisions of the Canadian Construction Documents Committee's (“CCDC”) standard form suite of documents, particularly *62 the CCDC 2--2008 Stipulated Price Contract (“CCDC 2”), will provide a lens through which such rights, remedies and obligations are examined.  \n Copyright © Thomson Reuters Canada Limited or its licensors (excluding individual court documents) . All rights reserved. 1  \nThe discussion and analysis in this paper focusses on the parties' exercise of the express rights and remedies accorded to them in the construction contract. It also includes references to potential restraints or limitations on these termination rights that may be imposed under the common law. Lastly, the paper addresses some of the practical risks that one should consider when proceeding with either method of termination. As many readers will know, termination of a contractual relationship is not always the end of the story. Moving forward to the successful completion of a project and transitioning from one counterparty to another requires adept planning and forethought. Some practical considerations for achieving a successful transition are discussed as contract termination inevitably leads to a new contractual relationship with its own unique challenges.  \n2. TERMINATION FOR DEFAULT  \nFrom the outset, a party considering terminating a construction contract for default must first ensure that they have a complete understanding of their contractual rights before proceeding down such a path. In electing to terminate the contract, a party must exercise care and ensure compliance with the contractual requirements. Since the contractual language is determinative in any discussion of termination for default, the provisions in GC 7 of the CCDC 2 will serve as a template to ","cbCairt8VDThR1LJ","https://ap.wps.com/l/cbCairt8VDThR1LJ","pdf",302501,27,"English","# Introduction\n# Termination for Default\n## Owner termination rights under CCDC 2\n# Termination for Convenience\n## Practical risks and common-law restraints","[{\"question\":\"What key steps must a party follow to terminate a construction contract for default under CCDC 2 GC 7?\",\"answer\":\"The party must ensure contractual rights are understood, then apply the default notice and cure requirements, including providing written notice and assessing whether the default is corrected within the specified working days or agreed alternative period.\"}]","Contract Termination: Considerations in Terminating for Default or for Convenience | PDF",1789534945,9,{"code":4,"msg":74,"data":92},[93,98,103,108,113,118,123,126,131],{"id":94,"doc_module":22,"doc_module_name":25,"category_name":95,"show_sort_weight":96,"slug":97},11,"Presentations",90,"presentations",{"id":99,"doc_module":22,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},12,"Resumes",80,"resumes",{"id":104,"doc_module":22,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},14,"Invoices",70,"invoices",{"id":109,"doc_module":22,"doc_module_name":25,"category_name":110,"show_sort_weight":111,"slug":112},15,"Posters",60,"posters",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},16,"Social Media",50,"social-media",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},17,"Forms",40,"forms",{"id":78,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":124,"slug":125},30,"letters",{"id":127,"doc_module":22,"doc_module_name":25,"category_name":128,"show_sort_weight":129,"slug":130},21,"Paper Templates",5,"papers-templates",{"id":132,"doc_module":22,"doc_module_name":25,"category_name":133,"show_sort_weight":4,"slug":134},158,"General","general-158"]