Termination of a construction contract—checklist


Published by a ÑÇÖÞÉ«ÇéÍø Construction expert
Checklists

Termination of a construction contract—checklist


Published by a ÑÇÖÞÉ«ÇéÍø Construction expert

Checklists
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This Checklist provides a summary of the issues that should be taken into consideration before and after a party decides to terminate a building contract, or other agreement entered into in connection with a construction project. Full guidance and information on terminating contracts can be found in the Termination and suspension in construction contracts subtopic.

Considerations when deciding whether to terminate

A party who is deciding whether to take steps to terminate a construction contract should consider the following points:

  1. •

    What are the reasons for terminating the contract?

  2. •

    Check the provisions of the building contract carefully. Does the building contract contain express provisions regarding termination, setting out specific events that will entitle the parties to terminate? Most UK building contracts contain express termination rights (see Practice Notes: JCT contracts—termination, NEC contracts—termination, FIDIC contracts 2017—termination by the Employer, FIDIC contracts 2017—termination by the Contractor, FIDIC contracts (pre-2017 editions)—termination by the Employer and FIDIC forms of contract (pre-2017 editions)—termination by the Contractor).

  3. •

    If there are contractual grounds for termination, what are they? Does one of these grounds apply to the

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