Either party can walk away or stop working or giving permission for the job to go on, but the other party can sue for damages.
My name is Stephen R. Cohen and have practiced since 1974. I practice in Los Angeles and Orange County, CA. These answers do not create an attorney client relationship. My answers may offend I believe in telling the truth, I use common sense as well as the law. Other state's laws may differ.. There are a lot of really good attorneys on this site, I will do limited appearances which are preparation of court documents it is , less expensive. However generally I believe an attorney is better than none.
Without placing this provision in context, your question cannot be answered. Before you sign the agreement, it would be advisable to seek out counsel to review the agreement so that you fully understand your rights and obligations.
Consult with a local contracts/consumer attorney. It will be well worth your time and whatever consultation fee is charged. www.naca.net is a good place to search for a qualified attorney in your area.
This is not to be considered legal advice nor does an attorney-client relationship exist.