An owner who is involved in a construction project has certain rights under his or her contract with a contractor. One of the owner's rights in a construction project is the right to stop work on the construction project. This right is similar to the owner's right to terminate the contract for breach of contract by the contractor.
If a contractor fails to carry out his or her obligations under a construction contract, an owner may order a work stoppage. The owner has the right to stop work until such time as the contractor performs his or her obligations under the contract.
If a contractor's work is defective and the contractor fails to remedy the defect, an owner has a right to stop the contractor's work.
If a contractor's work is unsafe, an owner also has a right to stop the contractor's work. In fact, the owner may be liable if he or she fails to order the work stoppage and an accident occurs as a result of the contractor's unsafe work. However, if the owner delegated responsibility for the safety of the work to an architect or to the contractor, the owner would not be liable for failing to order the work stoppage.
If a contractor defaults under a construction contract and an owner orders a work stoppage by the contractor, the owner may have a right to complete the work. Some contracts give this right to the owner if the contractor fails to perform within a certain number of days after notice has been provided to the contractor. The owner has the duty to provide the appropriate notice to the contractor in accordance with the terms of the contract.
The usual remedy for an owner who is faced with a contractor's default is to file a lawsuit against the contractor for damages for breach of contract, which damages include the cost of completing or correcting the contractor's work. However, if a contract contains a provision for termination of the contractor by the owner, the owner may terminate the contractor without filing a lawsuit. After the owner has provided appropriate notice under the terms of the contract, the owner may hire another contractor to complete the work or the owner may complete the work himself or herself. If the owner completes the work, the owner is entitled to withhold final payment to the contractor based on the reasonable value of his or her work. If the owner chooses to complete the work, the owner should keep accurate records and receipts for his or her materials and for his or her time to complete the work.
Copyright 2009 LexisNexis, a division of Reed Elsevier Inc.