Termination Letter

A termination letter is a formal written notice sent by one party to another, informing them of the decision to end a contract or agreement prematurely. In construction, a termination letter may be issued by a client to a contractor for reasons such as persistent delays, poor workmanship, or failure to adhere to contract terms. The letter typically includes the reasons for the termination, the effective date, the status of work completed, and the arrangements for final payment and project closeout. The purpose of a termination letter is to formally communicate the decision to end the contractual relationship, provide a clear and defensible justification for the action, and outline the steps required to wind down the project and resolve any outstanding issues. A termination letter is a serious step that can have significant legal and financial consequences and should be used only after careful consideration and consultation with legal counsel.