We often get questions about whether it’s possible to terminate a contractor in Oklahoma. When a contractor doesn’t live up to their end of the bargain—missing deadlines, using subpar materials, or walking off the job—it can cause serious frustration, financial loss, and even legal complications. Here’s what Oklahoma property owners and business clients need to know about terminating a contractor for breach—and what legal consequences might follow.
What Is a Breach of Contract?
In Oklahoma, a breach of contract occurs when one party fails to perform their obligations under a legally binding agreement. With contractors, this may include:
- Failing to complete the work on time
- Ignoring project specifications or building codes
- Abandoning the job site
- Using unapproved materials
- Not paying subcontractors or suppliers
- Performing work that is defective or unsafe
Not every mistake or delay is a breach—but when the issue is serious or repeated, you may have grounds to terminate the contract.
Review the Contract
Before taking action, read your contract carefully. Most written contracts contain:
- A termination clause (outlining when and how either party can exit the agreement)
- Notice requirements (e.g., you must give 7 or 10 days’ notice before termination)
- Cure provisions, allowing the contractor time to fix the problem before termination
- Terms related to final payments, warranties, and dispute resolution
Terminating without following the contract can expose you to liability—even if the contractor is in the wrong.
Provide Written Notice of Breach
If you believe the contractor has materially breached the agreement, you should send a written notice of breach. This letter should:
- Clearly state how the contractor failed to comply with the agreement
- Reference the specific provisions in the contract
- Give a reasonable deadline to cure the problem (if required by the contract)
- State that you may terminate the contract if the issue is not resolved
Make sure to keep a copy of all correspondence for your records.
Terminate the Contract (If Necessary)
If the contractor fails to correct the problem by the deadline—or if the breach is so serious that cure is not possible—you can proceed with formal termination. This should also be done in writing, and include:
- The date of termination
- A summary of the reasons
- Reference to prior breach notices and cure opportunities
- Instructions for removing tools and materials from the property
Once terminated, you may hire a new contractor to finish the work, but you should document all damages and costs so you can seek compensation if needed.
What Are the Legal Consequences?
Terminating a contractor after breach has several legal effects:
- You may stop making further payments under the contract
- You may be entitled to damages for the cost of hiring a new contractor, correcting defective work, or delays
- The contractor may try to file a mechanic’s lien, which you may need to challenge in court
- You could end up in court if the contractor disputes the termination or claims you breached the agreement
That’s why it’s critical to document everything and consult with an attorney before taking decisive action.
Can You Be Sued for Wrongful Termination?
If you terminate a contractor without cause or fail to follow the contract’s termination procedures, you could be sued for wrongful termination or breach. This might result in:
- Payment of the full contract value
- Liability for the contractor’s lost profits
- Attorneys’ fees and court costs
A well-documented, good-faith termination based on a material breach gives you the strongest legal protection.
Oklahoma Construction Law Attorneys
Oklahoma law provides several remedies to protect property owners from contract breaches and allow them to terminate a contractor, but there can also be legal consequences. If you’re considering firing a contractor after breach, don’t go it alone. Contact our construction law attorneys at Kania Law – OKC Attorneys can help. Call us today at 405-367-8710 or ask a question online.
