Contractor Termination Letter

Ending relationships with contractors is a necessary part of doing business. A contractor termination letter is the professional way to notify a contractor of your intention to terminate a contract and it provides written documentation that may come in handy in the event of a dispute.

Format and Content

A formal business tone is appropriate for ending a business relationship. The contractor termination letter format begins with an introductory paragraph that provides the effective date and the justification for the contract termination.The letter may be as short as a few paragraphs or a page or more in length. The letter is easily adapted for use with an individual contractor or a business engaged in a contractor position.

Sample

This contractor termination letter sample is written by the owner of the contracting business. He is using the ‘Failure to Perform’ clause contained in the contract to terminate the relationship before the contract’s maturity date. He provides evidence of his claim, including poor performance, unacceptable product quality, and the contractor’s failure to resolve the problems in a timely and satisfactory manner.

Dear Mr. Patterson:

This letter is to inform you thateffective today, April 20, 2013, I will no longer be using Hospitality Services Inc.as a contractor for my linen services. Prior to February 19, I was pleased with the quality of services your company provided. Our linens were picked up on schedule and returned on schedule. They were cleaned and folded according to our specifications. Over the last several months however, there have been a number of problems that have not been addressed to my satisfaction by either you or a member of your management team.

On February 19, the quality of linens delivered was significantly below acceptable standards. Many of them were torn or had frayed edges. The linens in the middle of each stack were wrinkled. Moreover, the color was not crimson as specified in the contract, but instead, a faded salmon pink my servers were embarrassed to put on the tables. I called your office within hours of receiving the order and was informed by your manager, Mr. Alston; the problem would not be fixed until our next delivery date at the end of the week. I left you a message with a request for a return call, which you did not honor.

On February 25, March 10, April 3 and April 17 our linen deliveries were late. On March 10 and April 3 we were forced to use paper napkins, which is a direct violation of our company’s commitment to excellence. In each case, the delivery was more than 8 hours late. My calls to the company were ignored. When I finally managed to connect with you by phone, you assured me that the issues were being addressed and that I could expect a quick return to the high standards I demand from of all the contractors who provide services for my company.

I have carefully documented all of the quality, customer service, and delivery issues I have experienced with your company. This documentation includes pictures of the delivered linens that failed to meet the color and quality standards as outlined in our contract. I am aware that our contract was scheduled to remain in effect until January 1, 2014. However, the evidence indicates your actions havenullified the contract per the ‘Failure to Perform’ clause on page 2, section B. Please address any questions to my attorney, Jeremy Forte, at (555)-555-5555.

Regards,

Jason Levy

Mr. Jason Levy, Owner

Mountain PeakResort