Construction Law

Abandonment In A Construction Contract

There are many terms and agreements in construction contracts that contractors should be aware of. In this article we will be discussing the abandonment clause in contracts. As construction lawyers in Jacksonville, we know that this clause can have different meanings, and want contractors to be able to distinguish between the two and use the correct one.

There are two types of abandonment cases in construction contracts that contractors should know, contract abandonment and abandonment of a construction project.

Contract Abandonment

Contract abandonment is when both parties involved in a binding contract have conducted themselves in a manner where the original contract is no longer valid. This can happen from both parties breaching the contract and violating their terms of agreement. In the case of contract abandonment, both parties must mutually agree to abandon the contract. If both parties cannot mutually make this decision, it could lead to alternative dispute resolution or litigation.

Abandonment of a Construction Project

The second type of contract abandonment occurs when a contractor is no longer able to perform the work on a project. This can happen for many reasons. If the contractor does not start on the project in a reasonable amount of time, if the contractor is unable to complete the agreed upon work, or if the contractor fails to resume their work in a reasonable amount of time, this is considered failing on the contractor’s part. When this happens, it is referred to as abandonment of a construction project. Abandonment of a construction project without a valid, legal excuse is cause for disciplinary actions, i.e., the contractor reimbursing the owner for any costs incurred as a result.

When faced with abandonment charges, whether contract abandonment or abandonment of a construction project, it’s highly recommended that contractors seek the counsel of a construction attorney in Jacksonville.

To schedule a consultation with a construction attorney in Jacksonville, please call us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.