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Can a contractor terminate a contract after he has breached payment structure set forth in the contract.

MichiganConstruction Contract

I have a pay structure in all my contracts, it states that, Failure to comply with this payment structure is a contractual breach and will result in an immediate halt in work until payments are brought to date and another payment structure agreement is signed. The contractor I am working for has not paid for one of my invoices and i told him that work would proceed as so as I am paid up to date for work completed. He told me that the check is in the mail and he is terminating the contract. When he breached the contract doesnt that mean that he has no say at this point and should be handled in court. Also the other reason I wont move forward is because the house is rapped in plastic and there is water built up and there is no place for it to go and the whole house is going to mold if they move forward with drywall finishing. Also on top of that there is no insulation in the attic so all the tape on the ceiling is going to crack. How can he terminate contract after he breached it and job is not ready/

2 replies

Jan 31, 2022
First you can enforce your payment structure. Second he may be able to terminate the contract depending upon the terms and conditions. If the contractor does not pay, I strongly suggest you file a construction lien IMMEDIATELY but before 90 days from your last date of work at the site.
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Jan 31, 2022
I agree with James but want to add that because you are a SUB-contractor, you have to send a "Notice of Furnishing" to the Owner of property asap and BEFORE you can file a construction lien. The above response is provided as a courtesy and does not establish an attorney-client relationship. If you would like to contact me directly for a consultation, I am located in Port Huron (810) 987-3970. Since 1975.
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