Termination for convenience provisions are important provisions to include in construction contracts. These are provisions that allow a party to terminate the contract for ANY REASON. No cause is needed to exercise the termination for convenience provision. In other words, the terminating party does not have to demonstrate the other party breached the contract. A termination for convenience can be exercised “just because.”

Typically, the party providing the service should not get to terminate for convenience. However, the party receiving the service will want to be afforded this contractual right.

For example, an owner (receiving a service) will want to include a termination for convenience provision with its prime contractor (providing a service). And, a general contractor (receiving a service) will want to include a termination for convenience provision in its subcontract with its subcontractor (providing a service). However, a general contractor providing a service for an owner, or a subcontractor providing a service to a general contractor, should not be able to terminate the contract for their convenience “just because” a better opportunity comes along.