Legal Question in Construction Law in California

Re: termination of my services by homeowner

I'd say step one is to look at the contract itself and see what it says about any of the following: (1) time for performance or for completion; (2) termination for cause; and (3) breach of contract and/or remedies for breach.

Most really complete and serious contracts and subcontracts for major projects will cover deadlines, breach, liquidated damages for missed deadlines, termination for cause, etc. in great depth, since experienced parties know that delays often occur and they thoughtfully provide for such problems when the contract is negotiated.

Even a simple contract will probably give some hint as to the rights, obligations and remedies of the parties in the event of a problem, e.g., what happens if a progress payment isn't made. Further, California's Civil Code states that when a contract is silent on the time for performance of a covenant (term) thereof, the courts must assume performance is/was due within a reasonable time (whatever that is).

There are instances in which a party may rescind a contract (probably not applicable here), conditions under which a party is no longer obligated to perform its obligations because the other party has failed to perform its obligations, and guidelines for what kind of breach is so material and incapable of cure that it causes (or allows) a termination. Contract attorneys can usually give you an educated guess as to when a contract difficulty falls into one or more of these categories.

Another factor to consider is whether the governing contract contains a mediation (and/or arbitration) provision.

My recommendation is to determine in conference with your employees what it would take (overtime, extra help, etc.) to complete the work by a date certain, then negotiate a stretch-out with the owner and te prime that is within your capabilities to deliver. Everyone is usually better off with a negotiated or mediated settlement than with arbitration or suit.

Re: termination of my services by homeowner

None. Everybody exercises 'their choice', and then settles into a lawsuit.