Termination of Contract, Corporate Recovery and Insolvency

Question 1

What is Termination?

Answer 1

Section 8 of contract

Termination clause which sets out the circumstances under which a contract can be terminated

Question 2

Grounds for Termination by the Employer?

Answer 2

Default by the contractor

• Contractor suspends the work
• Contractor fails to proceed regularly and diligently
• Failure to comply with CDM

Insolvency by the contractor

Corruption by the contractor

Question 3

Timeframes of Termination?

Answer 3

1) CA notifies of default

Question 4

Steps of Termination?

Answer 4

1) Agree what works to be completed
2) Hand over relevant documentation
3) QS to value works to date
4) Prepare final account
5) if an amount is due, C issues payless notice

Question 5

Grounds for Termination by the Contractor?

Answer 5

Default by the employer

• Does not pay amount due
• Fails to comply with CDM

Insolvency by the employer