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How to terminate subcontractor

My company contracts with the State of Washington. Recently they informed me that one of my subcontractors will no longer be allowed to have access to their clients thereby unable to work. Since this person cannot work as agreed, how do I end my contract with them.

1 reply

Dec 17, 2019

Under Washington law, you generally have to give the party you intend to terminate notice of the default(s) and a reasonably opportunity to cure the defaults. Normally, the first place to look for details is your written contract with the subcontractor. You ordinarily are required to comply with whatever notice period is in the termination provisions of the contract. Your situation may not be the normal case of a subcontractor not performing properly. If there is nothing the subcontractor to cure the default (e.g., if the subcontractor is subject to a court order preventing his/her access to the State's clients), then you would be excused from giving notice and opportunity to cure. You would then just confirm the State's position, note that this makes any further performance by the sub impossible, and that you reserve all rights to recover any damages resulting from the termination. I would recommend, if it would not impair your performance or relationship with the State, still giving the sub notice of the State's position and an opportunity to correct the problem. I realize this may not be practical, and if so, don't give this opportunity. But if you can do so, you are better protected under Washington law.

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