NSW 2009, Australia

100 Harris St, Pyrmont

24/7 Customer Support

Mon - Fri: 8:00 - 18:00

You can call us 24/7 for urgent matters

Homeowner’s Guide to Terminating a Construction Contract

Share on facebook
Share on twitter
As a homeowner experiencing problems with a home building project, it would benefit you to know that you have a right to terminate your construction contract. Read on to know the instances when you may exercise that right.

Table of Contents

Construction Contract Termination at a Glance

When am I allowed to terminate my construction contract?

You may terminate your construction contract:

  1. When you and your contractor agree to terminate it.
  2. When your construction contract contains a termination clause.
  3. When your contractor commits breach of contract.
  4. When your contractor repudiates the contract. 

A Quick Look at Each Mode of Termination

Termination by Agreement

You and your contractor may come to an agreement to terminate the contact, either expressly or impliedly. An express agreement to terminate may be done orally or in writing, although the latter would be advisable. An implied agreement would require clear, unmistakable conduct showing that neither you nor your contractor require each other to proceed with the obligations imposed by your contract. 

Termination Clause

Most construction contracts contain several clauses pertaining to termination. In fact, the standard form contracts in NSW such as those issued by:

all contain termination clauses.

These termination clauses give you the power to unilaterally terminate the contract when your builder or contractor commits breach. Additionally, they lay out the

that are needed to effect a valid termination – like the service of Notice of Breach and Notice of Termination.

Termination for Breach of Contract

Regardless of whether your contract contains a termination clause or not, you may nevertheless terminate it when your contractor commits a  breach of:

Termination for Repudiation of Contract

Repudiation occurs when one party, by their conduct, shows that they are unwilling or unable to proceed with their obligations under the contract. Similar to termination due to breach, termination for repudiation does not require that there be a termination clause in the contract.

How We Can Help

If you are currently in dispute with your contractor and would like to explore your options, feel free to give us a call. First consult is absolutely free.

Recent Posts​

ABIC NSW Contracts: Architect’s Guide

Find out what you need to know on:

  1. How to administer the ABIC Contract
  2. ABIC Contract Dispute Resolution
  3. How to assess a progress claim under the ABIC Contract
  4. Other important terms in the ABIC Contract

Send us a message. We’d love to hear from you.​

You can be confident that you are getting
the right legal advice.

Contracts Specialist is a Sydney-based construction law firm that deals with Building Disputes, Construction Contracts, Debt Recovery, and Security of Payment. With Contracts Specialist, you are ensured that you are in good hands.

Working hours

8am - 8pm Monday to Friday
(Phone until 18:00 Hrs)
Friday - 8:00-18:00

We are here

100 Harris St, Pyrmont, NSW 2009, Australia
Phone:+02 8096 8576 I Call us 24/7 for urgent matters
Email: john@contractsspecialist.com.au

Master Builders Association Logo - Membership NSW
Small Builders Building Software Official Logo
The Law Society of New South Wales Logo
100 Harris St, Pyrmont NSW 2009 Australia

Copyright ©2021 Contracts Specialist. All Rights Reserved.

Fill out the Form to Download
Homeowner’s Guide to Terminating a Construction Contract