![]() Without prejudice to any other rights, under the Contract or otherwise, the Employer shall then be entitled to recover all sums paid for the Works or for such part (as the case may be), plus financing costs and the cost of dismantling the same, clearing the Site and returning Plant and Materials to the Contractor.” “if the defect or damage deprives the Employer of substantially the whole benefit of the Works or any major part of the Works, terminate the Contract as a whole, or in respect of such major part which cannot be put to the intended use. “if the failure deprives the Employer of substantially the whole benefit of the Works or Section, reject the Works or Section (as the case may be), in which event the Employer shall have the same remedies as are provided in subparagraph (c) of Sub-clause 11.4. Obrascon Huarte Lain SA v Her Majesty’s Att General for Gibraltar EWHC 1028 (TCC)Ĭlause 9.4(c) Failure to Pass Test on Completion:.Sub-clause 15.5 Employer’s Entitlement to Termination.Sub-clause 15.4 Payment after Termination.Sub-clause 15.3 Valuation at Date of Termination.Sub-clause 15.2 Termination by Employer.Fails to rectify notice of rejection/remedial works notice.Fails to proceed “without reasonable excuse”.Fails to comply with a Notice to Correct.Employer fails to enter into the detailed contract within 28 days of the letter of acceptance:.Employer “substantially” fails to perform.No payment within 42 days of certificate.Engineer fails, within 56 days, to provide the payment certificate.No evidence of funds within 42 days of the written request under cl.Contractor may terminate if (on 14 days’ written notice, immediately*):.Sub-clause 16.4 Payment on Termination FIDIC Clause 16.2 Termination Sub-clause 16.3 Cessation of Work and Removal of Contractor’s Equipment Sub-clause 16.2 Termination by Contractor Sub-clause 16.1 Contractor’s Entitlement to Suspend Work ![]() Clause 16 Suspension and Termination by Contractor 2.4).Ĭontractor can claim EOT and prolongation costs.Įngineer should issue a clause 3.5 determination. Employer fails to provide evidence that it has the money to pay (cl.Wholly suspended = contractor may give notice of termination.84 days – contractor may ask for clarification:.The “Red Book” is still the benchmark, but the “Yellow Book” is now very popular and the “Silver Book” is also being widely used. Contractual provisions for termination and suspension (under the FIDIC forms of contract) The financial account is prepared under the termination provisions of the contract. payment is made).Ī further notice is usually required to terminate the contract. Right comes to an end if the default is made good (e.g. full payment).Ī written notice being served, and identifying the grounds. Right to suspend is based on defined grounds (e.g. Suspending the works – not usually, but depends on the terms of the contract.Failure to pay instalments – NOT usually a repudiation.Making completion impossible – site access.Refusal – so that the contractor cannot complete his work.Defects – not usually a repudiatory breach.Innocent party has a choice – accept the repudiation or demand completion of the contract.īeware – are you accepting a repudiatory breach or breaching the contract (so that the other party can accept your fundamental breach)?īeware – Middle East civil codes do not provide for repudiation! Examples of repudiatory breaches Intermediate terms – consider how serious the breach is.Warranties – breach leads to damages only.Under ENGLISH LAW the terms of a contract may be classified as: ![]()
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