Construction Termination Issues Part 4: What to Do When They Want to Fire You, the Architect or Engineer

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How do you protect yourself when your own design services are no longer needed or welcome on a project?

August 14, 2023
Melissa Dewey Brumback - Construction Law in North Carolina

What if you are told that your own design services are no longer needed or welcome on a project? Can they do that? What happens then? How do you protect yourself.

As you probably realize, while rare, the Owner does have the legal right to fire you “for cause”. See B101 §9.4, as long as the Owner gives you 7 days written notice. In fact, the Owner can terminate your contract for any reason at all (maybe you root for the wrong basketball team?) by terminating you for convenience (i.e., for any reason whatsoever) under B101 §9.5, again with 7 days written notice.

As with Contractor terminations, the money you get when fired for convenience is much greater than when you are terminated for cause. If you are fired “for convenience”, you get paid for all services previously rendered as well as termination expenses, including anticipated profit on the value of services not performed. See B101 §9.7.

Ms. Brumback may be contacted at mbrumback@rl-law.com



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