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Contractor Default and Termination

13 minPRO
3/6

Key Takeaways

  • Three escalating default levels—intervene early at Level 1.
  • Follow contractual termination process for legal validity.
  • Default adds 25-40% to remaining budget and 4-8 weeks.
  • Prevention through vetting and monitoring is far cheaper than recovery.
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Test Your Knowledge

1.What is the first step when a contractor defaults or abandons a project?

2.What typically happens to project costs when a replacement contractor must finish another contractors work?