Q. What is a termination for convenience contract?
A termination for convenience clause, or “T for C” clause, enables a party to a contract to bring the contract to an end without the need to establish that the other party is in default, for example because the client party’s needs have changed, or in order to arrange for another party to complete the contract.
Q. When can the government terminate for convenience?
The government can terminate a contract for their convenience, or in the case of most contracts in excess of $25,000, for default when the government believes that a contractor failed to perform in accordance with the provisions of the contract.
Q. What are the procedures for terminating a contract for convenience?
Federal courts and agency boards of contract appeals have recognized the government’s interest in terminating a contract when (1) the government no longer needs the supplies or services covered by the contract; (2) the contractor refuses to accept a modification of the contract; (3) questions have arisen regarding the …
Q. What may the government be liable for under a contract terminated for convenience?
The general rule is that, absent a clause allowing the contract to be terminated, a buyer who informs a seller that he does not intend to purchase certain supplies and services provided for in the contract has breached the contract and is liable for damages, potentially including anticipatory profits and consequential …
Q. What does termination for convenience of the government mean?
52.249-2 Termination for Convenience of the Government (Fixed-Price). (a) The Government may terminate performance of work under this contract in whole or, from time to time, in part if the Contracting Officer determines that a termination is in the Government’s interest.
Q. When does the contracting officer have the right to terminate?
The contracting officer should exercise the Government’s right to terminate a contract for commercial items either for convenience or for cause only when such a termination would be in the best interests of the Government. The contracting officer should consult with counsel prior to terminating for cause.
Q. Can a contractor be audited for termination for convenience?
The Government does not have any right to audit the contractor’s records solely because of the termination for convenience. (2) Generally, the parties should mutually agree upon the requirements of the termination proposal.
Q. When to use part 49-termination of contracts?
(b) Contractors shall use this part, unless inappropriate, to settle subcontracts terminated as a result of modification of prime contracts.
