Terminations for Convenience and Bad Faith by the Government | PNWC’s Government Contracting Update

Did you know that the Government can terminate your contract at any time for any reason? Well, so long as there is no bad faith or a clear abuse of discretion that is. Every Government contract has a termination for convenience clause. These clauses are found at FAR 52.249-1 through -10, depending upon the type of contract. Although these clauses are not mandatory flow down clauses for subcontractors, prime contractors would be taking undue risk if they don’t flow them down to their subcontractors  – if the Government terminates the prime, the prime will certainly need to do the same to its subcontractors.

Source: PNWC’s Government Contracting Update: Terminations for Convenience and Bad Faith by the Government