If the government wishes to terminate a contract, it can do so through “termination for default” or “termination for convenience.” In termination for default, the government alleges that the contractor did not meet the terms of the contract.
The government may also unilaterally terminate for convenience but is generally required to pay the contractor an equitable settlement. The government is less likely to terminate for convenience if it can make it a less costly default. Our attorneys are adept at preventing a manufactured default from costing our clients.
If a termination by default occurs, the contractor is compensated for work already accepted by the agency. In a termination for convenience, work must stop immediately, and a termination settlement claim is prepared for the unfinished part of the contract.
At Eckland & Blando, our attorneys help clients avoid terminations by default by improving performance and negotiating the continuation of the contract. We also assist clients in preparing termination settlement claims for terminations of convenience.
In addition, our attorneys advise clients who wish to terminate their government contracts on procedural requirements, performance cost recovery, subcontractor claims, and post-termination costs.