Contractor Termination Tips

Contractor termination is common in federal government contracting. Whether the government’s decision is to terminate a contract for default or convenience, each type will make a huge difference as to your next steps. Not all government contractor terminations are as simple to challenge as most businesses may think. Evidence in appeal court decisions show the substantial amount of termination decisions that contractors have lost without legal advice of an attorney. As a result, companies have lost thousands or millions in contractor termination claims that could have otherwise been saved.

Contractor Termination For Convenience Tips

These types of contractor terminations lead to different types of damages that are driven by regulations. When the government decides to terminate a contract for convenience, use the following tips as a mere guideline towards getting favorable results:

• Comply with the termination notice;
• Stop work to the level that the contracting officer tells you to;
• Resolve any claims with subcontractors;
• If there are costs that you cannot mitigate, tell the contracting officer in writing why you can’t;
• Prepare a settlement proposal;
• Seek help from a contract termination attorney that understands termination statutory damages;
• Protect any rights you have for appeal at the agency level.

Contractor Termination For Default Tips

Although courts look at contractor termination for default or for cause as a drastic measure, government contracting agencies have increased the amount of  “for cause” terminations both domestically and overseas.

When you receive this type of contractor termination, you may want to use the follow tips to protect your rights.

• If you disagree with the termination for default, advise the contracting officer in writing.
• Develop a list of emails and documentation to show if and how the government contributed to the causes leading to the termination decision.
• Before acting, seek legal advice to understand the consequences of the termination of contract decision.
• Appreciate the level of complexity of federal regulations dealing with this type of contractor termination.
• Learn how to protect your rights to a termination for default at the agency level.

Whether the type of government contractor termination is for default or convenience, there is potential to increase damages. The agency’s decision to terminate a contractor for cause is not always a lawful decision.

For help with the various levels of government contractor termination for default, call our attorneys at 1-866-601-5518.