30 Questions
What is the Contractor required to do after termination of the Contract under Sub-Clause 15.2.2?
Comply with reasonable instructions in a Notice given by the Employer
In the event of termination, who has the right to expel the Contractor from the Site?
The Employer
What action may the Employer take after termination under Sub-Clause 15.2.4?
Complete the Works and/or arrange for other entities to do so
What may the Employer and/or other entities use to complete the Works after termination?
Goods and Contractor’s Documents made by or on behalf of the Contractor
What is the Contractor responsible for delivering to the Engineer after termination?
Any Goods required by the Employer, all Contractor’s Documents, and all other design documents made by or for the Contractor
What is the restriction on the distribution of the document containing these conditions?
Restricted for distribution within the Lexis Nexis platform
What is the status of the document for contract use and printing?
Not for contract use and not printable
What is the Employer required to do after termination under Sub-Clause 16.2?
Cease all further work, except for instructed work by the Engineer for safety
What does the Contractor need to deliver to the Engineer after termination under Sub-Clause 16.2?
Contractor’s Documents, Plant, Materials, and other work for which the Contractor has received payment
What is the Employer obligated to do after termination under Sub-Clause 16.2, regarding payment?
Pay the Contractor in accordance with Sub-Clause 18.5 [Optional Termination]
Under what circumstances can the Contractor be entitled to payment for instructed work by the Engineer after termination under Sub-Clause 16.2?
If the Contractor incurs Cost as a result of carrying out such instructed work
What does the Contractor need to remove from the Site after termination under Sub-Clause 16.2?
All other Goods, except as necessary for safety
Under what circumstances can the Contractor be paid for any loss of profit or other losses and damages after termination under Sub-Clause 16.2?
Subject to the Contractor’s compliance with Sub-Clause 20.2 [Claims For Payment and/or EOT]
When can the Employer terminate the contract under Sub-Clause 15.5?
For Employer’s Convenience
Under what circumstances can the Contractor terminate the contract under Sub-Clause 16.2?
For reasons provided in Sub-Clause 16.2
What is the Contractor entitled to after termination for Employer’s Convenience under Sub-Clause 15.5?
Prompt payment in accordance with Sub-Clause 18.5 [Optional Termination]
If the Employer fails to comply with certain obligations, what rights does the Contractor have?
The Contractor may suspend work, be entitled to an extension of time, and/or payment for costs incurred.
When can the Contractor terminate the Contract?
If the Employer fails to comply with certain obligations and does not remedy the matter within 14 days of receiving the Notice.
What happens if the Employer does not remedy the matter within 14 days of receiving the Notice of termination?
The Contractor may terminate the Contract.
How long does the Employer have to pay the amount certified in the Payment Certificate?
Within 112 days after the Engineer receives the Contractor’s submission.
How does termination of the Contract under specific clauses affect the Contractor's rights?
Termination of the Contract under specific clauses does not prejudice any other rights of the Contractor.
When is the date of commencement of the time limit for agreement under specific Sub-Clause?
The date the Engineer receives the Contractor’s particulars.
Under what circumstances can the Contractor suspend work?
If the Employer fails to comply with a binding agreement, or final and binding determination, and such failure constitutes a material breach of the Employer’s obligations under the Contract.
What is the consequence of termination for the Contractor's default, according to the text?
The Employer is entitled to payment for additional costs of Works execution, clearing, cleaning, reinstating the Site, losses, damages, and Delay Damages.
When does termination for convenience take effect?
28 days after the Contractor receives the notice or the Employer returns the Performance Security.
What is the Employer entitled to do in the event of termination for the Contractor's default?
Sell the Contractor’s items to recover the payment, with any balance being paid to the Contractor.
What is excluded from the valuation after termination for Contractor’s Default?
The value of non-compliant Contractor’s Documents, Materials, Plant, and Permanent Works.
What must the Contractor do after termination for the Employer’s Convenience?
Submit detailed supporting particulars of the value of work done and any loss of profit or damages suffered.
What is the consequence of termination for the Employer’s Convenience?
The Employer may recover losses and damages, as well as Delay Damages if applicable.
What is the Engineer's role after termination for the Employer’s Convenience?
To agree or determine the matters related to the valuation after termination for the Employer’s Convenience.
Study Notes
Construction Contract Termination and Valuation Provisions
- After completion of the Works, the Employer must notify the Contractor to arrange for the removal of their Equipment and Temporary Works at their own risk and cost.
- If the Contractor fails to make a payment due to the Employer, the Employer may sell the Contractor’s items to recover the payment, with any balance being paid to the Contractor.
- In the event of termination for the Contractor’s default, the Engineer must determine the value of the Permanent Works, Goods, and Contractor’s Documents, including any additions or deductions, in accordance with the Contract.
- The valuation after termination for Contractor’s Default shall not include the value of non-compliant Contractor’s Documents, Materials, Plant, and Permanent Works.
- Upon termination for Contractor’s Default, the Employer is entitled to payment by the Contractor for additional costs of Works execution, clearing, cleaning, reinstating the Site, losses, damages, and Delay Damages.
- The Employer may terminate the Contract at any time for convenience, entitling them to recover losses and damages, as well as Delay Damages if applicable.
- After giving a termination notice for convenience, the Employer must immediately return the Contractor’s Documents, cease the use of Contractor’s Equipment and facilities, and arrange to return the Performance Security to the Contractor.
- Termination for convenience takes effect 28 days after the Contractor receives the notice or the Employer returns the Performance Security.
- The Contractor cannot execute any part of the Works or arrange for their execution by other entities until receiving payment after termination for the Employer’s convenience.
- The Employer may withhold payment to the Contractor until all costs, losses, and damages have been established after termination for the Contractor’s Default.
- After termination for the Employer’s Convenience, the Contractor must submit detailed supporting particulars of the value of work done and any loss of profit or damages suffered.
- The Engineer will then proceed to agree or determine the matters related to the valuation after termination for the Employer’s Convenience.
Test your knowledge of construction contract termination and valuation provisions with this quiz. Explore scenarios involving termination for default and convenience, as well as the valuation of permanent works, goods, and contractor's documents in accordance with the contract.
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