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Termination of construction contract

Terminate, end, finish, discontinue – all mean the same. There is a negative connotation attached to these words. These words do not give a happy feeling when spoken or read. But if words such as begin, start and continue exist, the existence of these words is inevitable.
A Termination Letter is the one that is written to inform that a contract or deal is being done away with or discontinued. Any party, the person who is working or the person who is getting the work done can give it. But this is definitely governed by the terms and conditions that had been mutually agreed upon at the time of signing the contract or deal.
A Termination Letter is a very important legal document so it needs to be very tactfully and carefully worded. It should be short and precise. It should clearly have the name and address of the addressee and the full details of the writer as well. The date when the Termination Letter is being given is a very important part of the letter. The date when the contract and deal has to be terminated is of utmost importance in the Termination Letter.
It is always advisable to print four copies of the letter one each to be kept by both the parties and one each with their respective legal heads to cover the legal aspects. Both the parties should preferably sign the last two copies.
DOS AND DON’T’S OF TERMINATION LETTER
  • A Termination Letter should be given well in advance so that the person who is impacted the most is well prepared
  • The termination however should always be done as per the mutually agreed terms and conditions
  • Since it is an important legal document it should be carefully worded
  • It should be short and to the point
  • It should always bear the date when the letter is written
  • It should also carry the effective date of the termination of the contract or deal
  • It should be signed by both the involved parties as proof
SAMPLE TERMINATION LETTER
_______________ (Name and address of reader)
_________________ (Name and address of writer)
_________________ (Date)
Subject: Termination of construction contract
Dear Ms/Mr ____________
For the last few weeks we have been facing issues with your workers on our construction site ____________ (address). Sometimes the issue is with the material and sometimes with the labor.
We would therefore like to terminate the contract with immediate effect. The contract is being terminated within the boundaries of our mutually agreed terms and conditions.
We regret to discontinue our relationship with you but believe that this was the only way out.
Please sign a copy of the letter in approval of the termination.
Best regards,
(Name of signing authority)

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