Termination for Default vs For Convenience

Ronald J. Sparrow heard of your success in dealing with your first two clients and has decided to hire you as well. He tells you that he recently signed a contract with the Department of the Interior to scoop up buffalo waste from six national parks in the western United States. He tells you he bid low because he thought he could pick up some cheap labor and haul the workers to the various parks in time to complete the work (which was supposed to be done within six months). Five months have passed and the Contracting Officer for the Department of the Interior just called him yesterday to tell him they are considering terminating the contract for default since he has only completed work in two of the six parks. He wants to know what a termination for default is and how it differs from a termination for convenience. He asks, if he is to default, which you would recommend his termination be characterized as (“for default” or “for convenience”). Finally, he asks what, if anything, he can do to salvage the situation without losing the contract.

 

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