Address
Re: Project: Project Name
Subject: Section 16.04.B – 7-Day Stop Work Notice for Lack of Certification
Dear Owner and Engineer,
Pursuant to Section 16.04.B of the EJCDC C-700, Contractor hereby notices Owner and Engineer of Engineer's failure to take action on Contractor's Payment Application No. 7 within 30 days per the Agreement. Hence, Contractor hereby provides notice to Owner and Engineer that Contractor will stop work on the Project if Engineer fails to act on this payment application within seven days of the date of this letter. If you have any questions or comments, please contact Contractor at your convenience.
Sincerely,
Contractor
D. Notice of Termination Provisions by the Contractor to the Owner
While most contract forms include a provision whereby the contractor can terminate the owner, this remedy is rarely exercised. Regardless, it is important for contractors to understand the notice requirements and scenarios where it can terminate the owner.
1. AIA A201 General Conditions
Per Section 14.1 of the AIA A201, the contractor can terminate the owner, upon seven days' written notice to the owner and the architect, if any of the following scenarios exist, through no fault of the contractor:
If the work is stopped for a period of 30 consecutive days because:an order of a court or other public authority that requires all work to be stopped;an act of government requires all work to be stopped;the architect has not certified the contractor's payment application or the owner has not made payment to the contractor within the time stated in the contract documents; orthe owner has failed to furnish the contractor proof of funding per Section 2.2.
if the owner repeatedly suspends, delays, or interrupts the entire work and it causes a delay, in aggregate, of more than 100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever is less.
if work is stopped for 60 consecutive days because the owner has repeatedly failed to fulfill the owner's obligations under the contract documents with respect to matters important to the progress of work.
Upon proper termination by the contractor, the contractor is entitled to recover payment for all work executed, as well as reasonable overhead and profit on work not executed, and costs incurred as a result of such termination.
Notice of Contractor Termination of Owner per the AIA A201
Via Certified Mail and Hand Delivery
April 23, 20__
Owner and Architect
Address
Re: Project: Project Name
Subject: Section 14.1 – 7-Day Notice of Termination
Dear Owner and Architect,
Pursuant to Section 14.1 of the AIA A201 General Conditions, Contractor hereby notices Owner and Architect of its intention to terminate the Contractor's agreement with the Owner within seven (7) days of the date of this letter. The reason for this notice of termination is a result of the court order that Contractor received on February 1, 20__, which is well over 30 consecutive days ago, that prevents Contractor from continuing the Work on the Project for reasons that have nothing to do with the Contractor. The court order, which is attached herein, relates to the Owner's dispute with a neighboring property owner. If you have any questions or comments, please contact Contractor at your convenience.
Sincerely,
Contractor
2. ConsensusDocs 200
Per Section 11.5 of the ConsensusDocs 200, the contractor can terminate the agreement, if the contractor issues the owner a seven-day written notice of termination through no fault of contractor, and:
the work is stopped for a 30-day period due to one of the following scenarios:court order or order of other governmental authority;governmental act during which materials are not available; orsuspension by owner for convenience per Section 11.1.
the owner fails to cure one of the following issues within three days upon receipt of the contractor's notice of termination:fails to provide the contractor proof of funding per Section 4.2;assigns the agreement upon the contractor's reasonable rejection;fails to pay the contractor per the terms of the agreement and the contractor has stopped work per Section 9.5; orotherwise materially breaches the agreement.
Upon proper termination by the contractor, the contractor is entitled to recover payment for all work executed and for any proven loss, cost, or expense in connection with the work, including all demobilization costs plus reasonable overhead and profit on work not performed.
Notice of Contractor Termination of Owner per the ConsensusDocs 200
Via Certified Mail and Hand Delivery
April 23, 20__
Owner
Address
Re: Project: Project Name
Subject: Section 11.5 – 7-Day Notice of Termination
Dear Owner,
Pursuant to Section 11.5 of the ConsensusDocs 200, Contractor hereby notices Owner of its intention to terminate the Contractor's agreement with the Owner within seven (7) days of the date of this letter. The reason for this notice of termination is a result of the court order that Contractor received on February 1, 20__, which is well over 30 consecutive days ago, that prevents Contractor from continuing the Work on the Project for reasons that have nothing to do with the Contractor. The court order, which is attached herein, relates to the Owner's dispute with a neighboring property owner. If you have any questions or comments, please contact Contractor at your convenience.
Sincerely,
Contractor
3. EJCDC C-700 General Conditions
Per Section 16.04.A of the EJCDC C-700, the contractor can terminate the agreement, upon issuance of a seven-day notice to the owner and the engineer and provided the owner or the engineer do not remedy the issue within such time, if one of the following scenarios exists through no fault of the contractor:
if work is suspended for more than 90 consecutive days by the owner, court order, or order from other public authority;
if the engineer fails to act on a contractor payment application within 30 days from submission; or
if the owner fails to fund the contractor's payment application within 30 days from when it is due.
In the event of a proper termination by the contractor, the contractor is entitled to recover from the owner costs for completed and uncompleted work plus fair and reasonable sums for overhead and profit, as well as expenses directly attributable to termination.
Notice of Contractor Termination of Owner per the EJCDC C-700
Via Certified Mail and Hand Delivery
April 23, 20__
Owner and Engineer
Address
Re: Project: Project Name
Subject: Section 16.04.A – 7-Day Notice of Termination
Dear Owner and Architect,
Pursuant