Construction Dive: Recession Fears Spur Uptick in Construction Terminations for Convenience
Construction contract terminations for convenience are being exercised more frequently, introducing additional risk for contractors and subcontractors. This is according to a Construction Dive article regarding a trend of owners pulling the plug on construction projects as supply chain pressures linger and recessionary fears loom.
Bradley N. Shefrin, Denver-based partner at Hall Booth Smith, told the publication contractors should make sure they stay on top of invoicing and getting change orders approved before work is completed to minimize their financial risk.
“Downstream contracts can be greatly impacted because many contractors and subs buy the materials and cannot return them,” he said.
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