Breaking Ground: Understanding Contract Terminations in Hemp Industry Projects

The hemp industry is expanding and has the potential to more than double in size within the next decade. This means more facilities are popping up and if they aren’t built to code or on schedule, projects stop or are terminated. The problem with legalities of hemp industry construction projects is that the terms of contracts must be absolutely solid in order to prevent disputes. A hemp facility can have a major impact on communities so issues that derail them can be critical to local economies. That’s why hemp industry projects should pay special attention to their contracts.

Recently, Business Guys On Business Trips published an article entitled, 3 ways a construction contract can be terminated. This article is a great resource for contractors terminating construction contracts and it offers up a few different ways to go about ending a contract prematurely and legally. Understanding the language of contracts is critical because hemp would-be builders must really understand how to cover their own tails if something goes south. Sustainability and eco-friendly practices are of course important. But in the Foundation of Legal Studies blog, we know that contracts are still king when it comes to early termination.

Check out this 3 ways a construction contract can be terminated excerpt from Ways to Legally End a Construction Contract. The article notes that “the failure of the owner to provide possession of the site” and “the defective or untimely performance of the contractor” are two other ways to get out of a contract, legally. But, it’s also important to realize the implications of having a faulty contract, termination or not. As the construction element of the hemp industry is growing, so too are the contracts that keep things running smoothly.

Should your hemp start-up be constructing a facility? If that’s a yes, then so too should be your hemp construction contract. Environmental Law Firm, Wilentz, Goldman & Spitzer, P.A. reminds hemp builders to complete full environmental due diligence prior to beginning a project: When it comes to the contractual issues for a hemp business that hasn’t been built yet, contracts should include other important constructions related items as well. One of these is the impact of current hemp regulations. It’s unlikely that a hemp facility will need to use 100% hempcrete (made from the inner hemp heart) but it could help with LEED certification. Speaking of which, certification is another thing hemp construction contracts should address.

Sadly, if your future hemp facility is terminated before its begun, you may lose a lot of valuable time and money on a hemp building project that is very involved financially.

In addition to ways to legally end a construction contract, it’s also helpful to clearly understand the hemp industry. The industry is trending toward more sustainable, eco-friendly cultivation and production practices. And so too are construction requirements.

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