It's generally safe to assume people intend to finish what they've started. When parties don't see a project to completion, however, contract law will usually provide remedies. But what if that nonperformance is the result of matters beyond the parties' control? In that case, construction contracts only operate to bail out a nonperforming party if they contain a "force majeure" or similar clause.
We've previously discussed some of the costs that come with changing or cancelling construction contracts. Sometimes circumstances change that makes these costs unavoidable. But, where the contract need not be rewritten or cancelled, most of the costs resulting from construction contract disputes can be avoided. Though it sounds like a no-brainer, the best way to avoid these costs is to have carefully drafted contracts, written to anticipate circumstances that may change each party's position.
Earlier this week we shed some light on the consequences of cancelling construction contracts. As we noted, things can change in an instant in the construction business, causing us to reconsider the contracts we signed. Fortunately, those changes don't always necessarily lead to contract cancellation.
Though we don't normally plan to, any number of factors can lead us to cancel construction contracts. This is especially true in the construction context, where even a rainy day can cause us to halt or abandon construction entirely. If construction contracts are not carefully considered before execution, these cancellations can be extremely costly.