[Direct answer]It can be terminated at any time, but compensation will be required. The employer of the contract for work has the right to terminate the contract at any time before the contractor completes the work, without needing the other party's consent or a breach of contract reason; the cost is to compensate the contractor for the losses suffered (completed workpieces, prepared materials, and losses due to work stoppages). There is also a statutory termination clause: if the contractor transfers the main work to a third party without authorization, the employer may directly terminate the contract without needing to compensate.

1. Problem background and typical scenarios

Halfway through the renovation, the client wants to change contractors; halfway through the equipment processing, the order is cancelled; halfway through the design draft, the client disappears—it's extremely common for both parties to change their minds halfway through a contractual relationship. The client thinks that terminating the contract means it's over, while the contractor believes that they should be paid for the unfinished products and materials. The disputes often arise from the boundaries of the right to terminate the contract and the calculation of compensation.

II. Key points of contention

First, the timing of the exercise of the right to terminate the contract at will: the definition before the completion of the work. Second, the scope of compensation: the completed part, the prepared materials, and the anticipated profits. Third, the statutory termination of the contract due to unauthorized subcontracting. Fourth, the procedures for the notice of termination and settlement of accounts.

III. Professional analysis by Henglue Lawyers

This case is handled by Beijing Henglu Law Firm.Xue SuhuaAttorney (Practice License No.: 11101201211769926, subject to the certificate issued by the judicial administrative authority): Agent. **First Level**: Rules and logic of the right of arbitrary termination. Article 787 of the Civil Code: The client may terminate the contract at any time before the contractor completes the work, and shall compensate for any losses caused to the contractor. - "Before the work is completed" refers to the work results that have not been delivered yet. Once the work is completed, the client can only conduct acceptance and payment or claim damages based on quality issues, and cannot arbitrarily terminate the contract. - The right to arbitrary termination does not require a reason. The legislative logic is that the contractor serves the client's specific needs. If the needs change, it makes no sense to retain the contractor, and the cost is to compensate for the contractor's losses. **Second Level**: How to calculate compensation. The contractor can claim compensation including: - The remuneration for the completed work (proportionally calculated based on quality); - Losses of materials and specialized tools purchased for contract performance (as the nature of the contract makes them unusable elsewhere); - Costs of work stoppages and personnel layoffs; - Generally, the contractor cannot claim the entire profit that could have been earned if the contract were completed (as arbitrary termination is not a breach of contract, and the contractor cannot recover the "hypothetical total profit if the work were completed"). This differs fundamentally from the compensation scope for breach of contract termination. However, materials are typically provided by the client (contract processing), and the risk of materials belongs to the client. The parties should settle accounts item by item. **Third Level**: The second path of statutory termination: The contractor shall complete the main work with its own equipment, technology, and labor. If the contractor transfers the main work to a third party without the client's consent, the client may terminate the contract (Article 772). - This is a breach of contract termination, and the client does not bear compensation liability. The client can also claim damages for quality issues. - The contractor does not need the client's consent to transfer ancillary work to a third party, but the contractor remains responsible to the client for such work. **Fourth Level**: Procedures and evidence: The right of termination is a formative right. The written notice takes effect upon delivery and does not require the other party's consent. The notice should specify the intention to terminate and settlement arrangements to avoid "verbal stop orders" leading to expanded losses. The contractor's obligation to stop losses after receiving the notice must also be clarified (stop preparing materials and properly storing semi-finished products). Losses expanded due to negligence in stopping losses will not be compensated. **Fifth Level**: Scenario differences: - For decoration contractors who change teams midway, the completed work is settled at the agreed unit price or through appraisal; - For disassembling and reworking, the return of materials and the discounted value of processed parts are the core of settlement. - In Beijing, there are many disputes over decoration and custom processing, and the right of arbitrary termination is almost always raised. The settlement algorithm and evidence chain determine who ultimately compensates the other party's difference in price.

IV. Practical suggestions and legal basis

The first step is written termination: the notice shall specify the intention of termination and the effective date, and a record of service shall be kept; The second step is itemized settlement: the completion of the project volume, materials, and losses due to idle time shall be fixed through reconciliation; The third step is checking for subcontracting: the direct termination of the unauthorized subcontracting of main work and the preservation of evidence shall be carried out; The fourth step is controlling losses: both parties shall fulfill their obligation to stop losses and prevent the expansion of losses without anyone to bear the responsibility. Main legal basis: Articles 770, 772, and 787 of the Civil Code of the People's Republic of China; the specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Advice

There are three key points regarding the termination of a contractor's contract: 1. The contract can be terminated at any time before the work is completed, and the compensation is limited to actual losses, excluding all profits. 2. If the contractor subcontracts major tasks without authorization, the contract will be terminated without compensation. 3. Termination must be in writing, and settlement must involve a reconciliation of accounts. Verbal terminations are a source of disputes. For disputes involving the termination and settlement of a contractor's contract, you can seek legal assistance through the following channels:Business and contract disputes in enterprisesThe service obtains a comprehensive solution, and those involved in contract disputes over interior decoration can refer to it for reference.Property transactions and construction projectsFor plates, those involved in the review of the contract system can refer to it for referenceSpecialised legal servicesFor plates involving the recovery of settlement payments, you can refer to the relevant information for reference.Creditor's rights and debts, and enforcement cases板块。

VI. Frequently Asked Questions

Q1: Does the client need the contractor's consent to terminate the contract?

No, it's not necessary. The right to unilaterally terminate the contract takes effect upon receipt of the written notice.

Q2: Can I arbitrarily terminate the contract after the work has been completed?

No. Disputes arising after the completion of the work shall be handled in accordance with the acceptance and quality breach procedures.

Q3: Does the compensation after the release include the expected benefits?

Generally, it does not include all profits, but is limited to the actual losses of labor and materials and the costs of shutdowns.

Q4: What should the contractor do if he transfers the work to others?

If the main work is subcontracted without the consent of the client, the client may terminate the contract and not bear any liability for compensation.

Q5: Does an oral order to stop count as a termination?

This is controversial. The written notice shall prevail, and both parties may bear the risk of increased losses after the oral suspension of the project.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Corporate commercial legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.