Leftover Equipment and Materials When a Contractor Is Abruptly Terminated

Construction equipment

Can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)?

November 6, 2023
Brian Perlberg - ConsensusDocs

Termination for cause is costly and adversarial and has been covered in this article. But can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)? The answer depends on what is in your contract.

Under ConsensusDocs, a constructor must give its permission to use any equipment or supplies left at the worksite, such as a crane.[i] Moreover, the owner must indemnify the constructor for using their equipment. This makes sense because even if a constructor were appropriately terminated for cause, using their equipment and materials they no longer possess or control unfairly creates additional liability exposure. At a minimum, the owner should take on the risk of using the equipment and materials since they benefit from such use.

Mr. Perlberg may be contacted at bperlberg@ConsensusDocs.org



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