Cancellation-risk review
without cause
The GC may be able to end your contract without default, then limit what it owes you.
Why it matters
Millwork shops commit early. Material, hardware, finish samples, engineering, shop drawings, and fabrication time can be sunk before install begins.
Contractor may terminate for convenience at any time, and Subcontractor will be paid only for work accepted at the site.
If Contractor terminates for convenience, Subcontractor is paid for work performed, custom materials, committed costs, reasonable demobilization, overhead, and profit on completed work.
Can we revise convenience termination so the shop is paid for performed work, custom materials, committed costs, demobilization, and reasonable overhead and profit?
Use counsel if custom materials, shop fabrication, or committed purchase orders are large before installation begins.
Next step
Check the actual subcontract language.
Use the phrase checker or upload the subcontract to see whether this wording appears with other risk terms.