The Public Building Authority terminated a jail construction contract with Dawson Building Contractors using a 'termination for convenience' clause. The court ruled that once a termination for convenience is issued, it completely ends the contract and the contractor owes nothing more. The PBA could not later claim it was actually a 'termination for cause' to avoid paying what was owed. This matters to subcontractors because it protects your right to payment when a project is terminated for convenience—the owner cannot switch reasons mid-stream to deny you money.
A termination for convenience is final and complete—it cannot be converted to termination for cause after the fact without explicit contract language allowing it.
Once terminated for convenience, you stop work immediately and are entitled to payment for work completed, even if the owner later claims cause existed.