Holloway has extensive experience working on behalf of both plaintiffs and defendants, owner and contractors, in contract termination cases, including Termination for Cause, Termination for Convenience and Wrongful Termination. It is perhaps our most common form of construction contract dispute engagement.


A contractor’s entitlement to termination damages arises in various circumstances. For example:

  • When a contractor wrongfully terminates the contract and abandons the job, as we have seen many times, he will likely be sued for the difference between the owner’s cost to complete and the earned value of the contract work the contractor completed. He may be required to pay extra costs associated with the delay, perhaps liquidated damages, the hiring of a completion contractor(s), etc.
  • If it is shown that the contractor excusably terminated the contract for cause, he may claim to recover payments for work executed and earned, and for proven compensable loss with respect to materials, equipment, tools, and construction equipment and machinery, including reasonable overhead, profit and damages.
  • Prior to termination or abandonment, the contractor can elect to suspend the work if a material breach has occurred such as untimely payments by the owner of valid payment applications where proper notice has been given, and where the contractor is not in breach. We have seen this to be a much safer course of action than termination, and it allows the owner a chance to cure. If the contractor must terminate for cause, he must comply the terms of the contract and provide proper formal written notice to the owner.

  • If both the owner and contractor are in material breach of contract at the time of termination, the assessments and formula may change and the relative nature and degree of the breaches become relevant. The calculation of contract termination damages has been a significant piece of our business over the past 20 years.


    J. Steve Holloway, GC
    The Holloway Consulting Group, LLC
    10885 W. Beloit Pl.
    Lakewood, CO 80227
    Tel: (303) 984-1941
    Email: hollowayconsultinggroup@gmail.com

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