22nd November 2022
Back in May, Louise Norbury Robinson and Kathryn Vickers, reported on supply chain challenges facing housebuilders/developers, and offered legal and practical advice. One of their suggestions was that parties should review key contracts to determine where contracts (and commercial relationships) might allow for flexibility and the ability to negotiate to ‘ride out’ a crisis, and where pressure points or breaking points arise. Where pressure points do arise, contract termination or suspension of contracts may become preferable or required.
A turbulent political climate, supply chain pressures and market uncertainty are causing some housebuilders/developers to consider terminating deals which have become commercially unfavourable due to the rising costs of materials and outdated appraisals. Some landowners are seeking to capitalise upon unexpectedly high land values.
They have now published a new article which highlights key commercial and legal issues and risks that housebuilders and developers (and indeed any business) should consider when approaching contract termination.
Ensuring that you have obtained the best possible guidance before deciding and proceeding to terminate any commercial or development contract will help to ensure the best result for your business.
In the same vein, if and when your housebuilder/developer business finds itself on the receiving end of any contract termination notice or action, our Commercial Dispute Resolution team can critically assess validity. If necessary, we can provide commercially-focused strategic advice so as to ensure minimal disruption and losses to your business.
So, for advice, assistance or training in relation to contract termination, or if you have any queries or concerns in connection to any commercial and/or development contracts more generally, please contact Louise Norbury Robinson or Kathryn Vickers, who will be very happy to help.