October 10, 2023

Expert construction solicitor from Holmes & Hills discusses wrongful termination on renowned podcast

Continuing the tradition of shedding light on significant topics in the construction sector, Holmes & Hills remains at the forefront. Following Sam Bawden's comprehensive discussions back in August, Abbie Chisnall, an esteemed construction solicitor from the firm, takes centre stage. Collaborating with the skilled Paul Heming on 'Own The Build', the duo delves into the intricacies of wrongful termination in construction contracts, with a keen focus on the 'termination at will' clause. Paul Heming, a renowned Quantity Surveyor, and founder of C-Link, navigates the conversation, ensuring listeners receive deep insights from construction industry experts.

Abbie's pathway into construction law is as intriguing as her expertise. An academic pursuit in law, complemented by her first paralegal role and mentor during this phase, nudged her towards the world of construction. Abbie conveyed her enthusiasm for the construction realm, highlighting her appreciation for the genuine dialogues she shares with clients.

The podcast then transitioned to focus on the urgency and relevance of understanding wrongful termination, given the current dynamics of the construction industry. Abbie sheds light on the significant surge in such cases, affecting a broad spectrum: from clients to main contractors and subcontractors. This complex issue emerges when one party perceives a default by another, triggering them to terminate the contract. Abbie further explained that wrongful termination arises when contractual provisions aren't appropriately followed. For instance, if the prescribed number of days for serving notice isn't met, or if the mandated communication method is overlooked, the notice might be deemed invalid.

Key insights from Abbie on construction contracts:

  • Understand your contract: Always check and comprehend your contract, especially the termination clause.
  • Guidance for contractors: Main and subcontractors should be particularly aware of default notices and termination notices.
  • Termination at will clause: This essentially means the primary party can terminate the contract at their discretion, without needing a specific reason.
  • Record keeping: Maintain meticulous records of all instructions.
  • Variations: For any variations, ensure you're adhering to the contract's terms.

Moreover, Abbie highlights the significance of correctly serving notices. While it might appear straightforward, it's here that many falter. She mentions that often, critical notices are misdelivered simply because of an individual's oversight regarding their contract's specifications. Such errors could stem from basic factors like the medium of communication or even specific postal delivery types.

In today's challenging construction climate, with rising insolvencies and material cost fluctuations, Abbie's insights are not just invaluable – they are essential. Missteps can have profound financial consequences, underscoring the necessity for everyone in the construction arena to be thoroughly versed in their contract's stipulations.

Episode 138 of 'Own The Build' with Abbie Chisnall promises a blend of profound insights and practical guidance. Don't miss out on this enlightening discussion that bridges legal expertise with ground realities of the construction domain.

Listen to the full podcast here: Wrongful Termination in Construction and how to spot a Termination at Will Clause. (EP 138) - C-Link

Get Expert Construction Law Advice.

Call 01206 593933 and speak to Holmes & Hills' specialist Construction Division.
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Key Contact

Abbie Chisnall

Solicitor

alg@holmes-hills.co.uk

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