Vol 14 - Ch 7 - Appx 7D - Sample Contract Termination Notices

Sep 16, 2026

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Procurement contract administration guidance for contract termination under a procurement framework. It provides sample notice forms and agreement templates for no-cost settlement agreements covering complete termination and partial termination, including required language, parties’ waivers, reserved rights, and itemized termination details. It also supplies a letter notice of termination for convenience when no-cost settlement is unavailable, specifying certified-mail or hand-delivery methods, effective-date statements, cessation-of-work steps, recordkeeping, subcontractor and supplier notifications, and reporting of pending legal proceedings.

LanguageEnglish

CategoryLetters

FormatPDF

Pages7

Reading Time3 min

AccessFree to download

Procurement

Contract Administration

Sample Contract Termination Notices

No-cost settlement agreement – complete termination

No-cost settlement agreement – partial termination

Letter Notice of Termination for Convenience

Vol 14: Procurement Ch 7: Contract Administration Appx 7D: Sample Contract Termination Notices Review and approval by the PE must be obtained prior to issuance of any of the following notices. See: Guide, Vol 14, § 755.10.40. § 7A.100 No-cost settlement agreement – complete termination. [Insert the following in Block 14 of SF 30 when executing a no-cost settlement agreement, under a complete termination.] (a) This supplemental agreement [insert “modifies the contract to reflect a nocost settlement agreement with respect to the Notice of Termination dated ”or, if the contract has not been terminated by prior notice,“terminates the contract in its entirety”]. (b) The parties agree as follows: The contractor unconditionally waives any charges against the judiciary because of the termination of the contract and, except as set forth below, releases it from all obligations under the contract or due to its termination. The judiciary agrees that all obligations under the contract are concluded, except as follows: [List reserved or excepted rights and liabilities.] (End of agreement) § 7A.105 No-cost settlement agreement – partial termination. [Insert the following in Block 14 of SF 30 when executing a no-cost settlement agreement, under a partial termination.] (a) This supplemental agreement modifies the contract to reflect a no-cost settlement agreement with respect to [insert “the Notice of Termination dated ” or, if there has not been a prior termination notice issued, “the partial termination of the contract as outlined below”.] (b) The parties agree as follows: (1) The terminated portion of the contract is as follows: [Specify— Last revised June 29, 2010 (i) item numbers, (ii) descriptions, (iii) quantity terminated, (iv) unit and total price of terminated items, and (v) any other explanation necessary to avoid uncertainty or misunderstanding.] (2) The contractor unconditionally waives any charges against the judiciary arising under the terminated portion of the contract or by reason of its termination, including, without limitation, all obligations of the judiciary to make further payments or to carry out any further undertakings under the terminated portion of the contract. The judiciary acknowledges that the contractor has no obligation to perform further work or services or to make further deliveries under the terminated portion of the contract. Nothing in this paragraph affects any other covenants, terms, or conditions of the contract. Under the terminated portion of the contract, the following rights and liabilities of the parties are reserved: [List reserved or excepted rights and liabilities.] (End of agreement) § 7A.110 Letter Notice of Termination for Convenience. The following letter is suggested for use if a contract for products is being terminated for convenience, and a no-cost settlement is not possible. With appropriate modifications, it may also be used in terminating contracts for services. This notice shall be sent by certified mail, return receipt requested. Alternatively, it may be hand-delivered to the contractor’s representative and a hand receipt obtained. Notice of Termination [At the top of the notice, set out all special details relating to the particular termination; e.g., name and address of company, contract number of terminated contract, items, etc.] (a) Effective date of termination. You are notified that Contract No. (referred to as “the contract”) is terminated [insert “completely” or “in part”] for the judiciary’s convenience under the clause entitled [insert title of appropriate termination clause]. The termination is effective [insert either“immediately upon receipt of this Notice” or “on , 20 ,”or “as soon as you have delivered, including prior deliveries, the following items:”(list items to be delivered)]. Reduce items to be delivered as follows: [insert instructions]. (b) Cessation of work and notification to immed

FAQs

What prior review approval is required before issuing termination notices?

Review and approval by the PE must be obtained prior to issuance of any of the notices referenced in the guidance.

What must be included in a no-cost settlement agreement for a complete termination?

The supplemental agreement must state it modifies the contract to reflect a no-cost settlement agreement tied to the Notice of Termination (or terminates the contract in its entirety), and it must include unconditional waivers by the contractor and the judiciary plus reserved or excepted rights and liabilities.

How is the Letter Notice of Termination for Convenience intended to be delivered?

It is to be sent by certified mail with return receipt requested, or alternatively hand-delivered to the contractor’s representative with a hand receipt obtained.

Sep 16, 2026

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