When an owner terminates a prime contractor or a prime contractor terminates a subcontractor, it almost always costs more for the terminating party to complete the work under the contract. Fortunately, if the termination was proper, the owner should be able to recoup the extra cost to complete the work from the terminated contractor. The same is true when a contractor terminates a subcontractor.
Often, the terminated party will argue that the excess completion costs were unreasonable. Generally, the burden will be on the terminated party to prove that the cost to complete the work was unreasonable. This can be very difficult to prove.Continue Reading Construction Completion Costs and the Burden of Proof