I think youre premature to say that the client saved money.
He paid money for something that wasnt completed and he didnt get. Should he require it completed at a later date then there is a risk that he may need to pay more than the original price.
Member for
17 years 3 months
Member for17 years3 months
Submitted by Samer Zawaydeh on Wed, 2008-11-26 15:05
Actually, in the case I am working on, the work was terminated to the agreement of both parties. The client saved money and the Contractor raised his profit percentage.
The time was right since most of the markets is down, savings are in favor of the client side.
Nowadays, clients are more wiser in dealing with inflation that they make it as an inclusion to contracts. With that idea, I guess the risk of terminating contracts became evitable.
Member for
22 years 8 months
Member for22 years8 months
Submitted by Carlito Ogoy on Tue, 2008-11-04 19:48
I think this needs a little calculation. How much do I need to pay the contractor if I will terminate the contract, and how much do I gain if I do so? Nevertheless, it depends on the contract if you are allowed to terminate it for that reason. Even suspension of work has grounds before you can apply it. Otherwise you will be facing legal difficulties with it.
Member for
24 years 9 monthsRE: Terminate to save money
I think youre premature to say that the client saved money.
He paid money for something that wasnt completed and he didnt get. Should he require it completed at a later date then there is a risk that he may need to pay more than the original price.
Member for
17 years 3 monthsRE: Terminate to save money
Dear Neil,
Actually, in the case I am working on, the work was terminated to the agreement of both parties. The client saved money and the Contractor raised his profit percentage.
The time was right since most of the markets is down, savings are in favor of the client side.
Best,
Samer
Member for
24 years 9 monthsRE: Terminate to save money
Id chose not to terminate, in particular if the contractor was performing.
As mentioned below - the real cost of termination may well exceed your perceived 30-40% saving, which is already miniscule on such a small contract.
If multi-billion I guess its a different story
Member for
17 years 3 monthsRE: Terminate to save money
Nowadays, clients are more wiser in dealing with inflation that they make it as an inclusion to contracts. With that idea, I guess the risk of terminating contracts became evitable.
Member for
22 years 8 monthsRE: Terminate to save money
I think this needs a little calculation. How much do I need to pay the contractor if I will terminate the contract, and how much do I gain if I do so? Nevertheless, it depends on the contract if you are allowed to terminate it for that reason. Even suspension of work has grounds before you can apply it. Otherwise you will be facing legal difficulties with it.