Having a new building created for your business is a huge commitment and such is the undertaking it is little surprise that protections exist both under commercial law, and often as a clause contained within the building contract itself. With the huge implications for your business financially, being able to cancel a building contract if all is not going smoothly is a right you will wish to have. Here is how that right could manifest itself.
Building Contract Termination
The definition of the termination of a building contract is that it releases both parties from some or all of their obligations under the contract. However, that does mean that either party does not still have rights that continue thereafter.
Your Grounds For Terminating A Building Contract
In most instances, commercial law provides the basis upon which a contract for building work can be terminated which we have outlined below.
#1 Breach Of Contract
Breach of contract will exist if the other party, in this case, the construction company, are failing to meet their obligations under the building contract. The list of breaches is almost endless, but it could include not using specified materials, not complying with building regulations, and failing to meet agreed milestones within a specified time. You must ensure a breach has taken place by first identifying it, and then gathering evidence of that breach.