When Can a Contractor Stop Work?
Terminations always come with high stakes that could make or break a construction firm’s future.
The implied duty of good faith and fair dealing was a cornerstone in Kiewit-Turner, requiring parties not to impede the other’s performance through unreasonable actions.
Crucially, this doctrine doesn’t demand proof of bad faith — mere hindrance suffices.
Recent cases build on this, applying it to safety protocols and geopolitical disruptions. For example, in a case involving the Department of Agriculture (CBCA 6358, 6567, 2022), the contractor alleged a breach from government-mandated suspensions during accident investigations at wildfire sites.
The CBCA rejected the claim, finding the agency’s actions reasonable for ensuring safety and professionalism — a balanced application that protects owners from frivolous challenges while holding them accountable for overreach.
Author's summary: Contractors may stop work due to breaches of good faith.
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