Back in the olden days of con-struction, once a contract was entered, the contractor had the right to complete it and be paid the full price. Over time, the concept of a "Termination for Convenience" (T for C) clause arose. By inserting this clause into a written contract, an owner avoided being sued for breach of contract if it changed its mind and wanted to pull the plug on a project.rnInitially seen in federal contracts, the theory was that the public interest was not served by forcing the government to either build something it no longer needed or pay damages for not doing so, if, in fact, there was a compelling "sovereign" reason to stop - such as a breakout of war or peace, or hazardous materials found on a site. The clause said that the owner would pay costs incurred to date and reasonable "termination expenses," meaning unavoidable costs incurred due to an early termination (i.e., uncancel-able material orders, restocking charges, unexpired rental contracts).
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