How May a Contract for Design Services Be Terminated?

by | Oct 18, 2022 | Liability Risks | 0 comments

General Terms and Conditions, frequently referred to as “Boilerplate,” defines how the Client and Consultant will relate to each other in a business relationship without regard to a specific project. The following is a critical “Boilerplate” item that if not clearly and equitably stated will likely result in misunderstandings and confrontational situations:

Termination/Suspension of Consultant’s Services – The termination provision in the contract should address the following:

    • Which party can terminate/suspend
    • Can termination/suspension occur with or without cause
    • Can termination/suspension occur with or without penalty
    • The amount of written notice required prior to termination/suspension
    • How payment for services provided prior to termination is to be made
    • How Consultant is to be paid for archiving of work prepared prior to termination/suspension
    • That Consultant can suspend or terminate services due to non-payment by Client

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Lowe Consulting, LLC
John M. Lowe, Jr., P.E.
Happy Valley, OR