When a commercial enterprise in Colorado is not satisfied with a contractor’s work performance, the two parties may agree to terminate an agreement. If a dispute is not quickly resolved, however, it may require legal action. Whether a contractor delays in fulfilling obligations, produces a shoddy product or uses low-quality building materials, a business has the right to find another contractor. 

Agreement terms oftentimes outline when a party can legally terminate a contract. While some contracts may allow termination only under certain conditions, others may provide greater flexibility regarding how parties can end a relationship. Understanding a business’s needs, cycles and financial circumstances ahead of time helps in creating an ironclad and workable agreement. 

Using effective language for terminating an agreement 

The Denver International Airport contracted a company to renovate its main terminal, and their contract agreement specified the termination conditions. The airport could end the relationship with the contractor if and when it determines that doing so would be “in the best interest of the Owner.” 

After numerous delays and the contractor also requesting increased resources, the airport decided to move forward with terminating the $1.8 billion contract, as reported by Denver7. Allegedly, the contractor failed to disclose to the airport that the renovations would cost millions of dollars more than anticipated before the parties signed the contract. 

In its response to the airport’s termination, the contractor claimed that the airport did not fully disclose the weakness of the preexisting concrete in the structures slated for renovation. The contractor reportedly noticed this during its safety analysis, but it did not resolve the matter with the airport before attempting to begin the project. 

Delaying project completion may lead to loss of income 

Delays are very serious issues because they affect both operations and income. Customers and consumers are unable to use the establishment’s services. It is reasonable to expect that delays may result in a substantial loss of revenue or other damages, and properly worded contract terms may provide for a remedy.