Termination

Question 1

What are the ways in which a contract can be terminated?

Answer 1

• Default by the Contractor.
• Insolvency of the Contractor.
• Corruption by the Contractor.
• Default by the Employer
• Insolvency of the Employer.
• Termination by either Party.

Question 2

What are the three situations that could result in a default by the contractor according to the contract?

Answer 2

• The contractor wholly or substantially suspends the carrying out of the Works without reasonable cause.
• The contractor fails to proceed regularly and diligently with the Works.
• The contractor fails to comply with clause 3.9 of the contract. (CDM Regulations).

Question 3

What are the three situations that could result in a default by the employer according to clause 6.8 of the contract?

Answer 3

• Employer not paying the Contractor on time
• Employer interfering with or obstructing the issue of certificates due under the contract
• Employer failing to comply with clause 3.9
• Suspension of the Works for one month or more due to reasons beyond the Contractor’s control
• If any specified default or specified suspension event continues for 7 days, the Contractor may terminate their employment under the Contract.