Termination in construction contracts - Revision history

91.84.15.72 at 08:15, 10 September 2021

2021-09-10T08:15:57Z

← Older revision		Revision as of 08:15, 10 September 2021
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	Frustration occurs when circumstances that are not the fault of either party mean it is impossible to continue with the contract. The contract will come to an end without any party being considered to be in breach. However, parties must be certain that a frustration event has occurred so as not to be in breach of contract.		Frustration occurs when circumstances that are not the fault of either party mean it is impossible to continue with the contract. The contract will come to an end without any party being considered to be in breach. However, parties must be certain that a frustration event has occurred so as not to be in breach of contract.

−	Force majeure provisions might provide for circumstances that could otherwise be considered frustration events, and so result in termination of the contract. Force majeure (for example, exceptionally adverse weather conditions) is generally considered a relevant event in construction contracts which will allow for an extension of time ~~and a claim for loss and expense~~ rather than termination. This may be in the interests of both parties.	+	Force majeure provisions might provide for circumstances that could otherwise be considered frustration events, and so result in termination of the contract. Force majeure (for example, exceptionally adverse weather conditions) is generally considered a relevant event in construction contracts which will allow for an extension of time rather than termination. This may be in the interests of both parties.

	For more information, see Frustration.		For more information, see Frustration.

Designing Buildings at 08:41, 4 September 2020

2020-09-04T08:41:24Z

← Older revision		Revision as of 08:41, 4 September 2020
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	* Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3		* Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3

−	[[Category:~~Other_legislation~~]] [[Category:DCN_Legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]

Editor at 15:52, 9 April 2020

2020-04-09T15:52:30Z

← Older revision		Revision as of 15:52, 9 April 2020
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	* Fair payment practices.		* Fair payment practices.
	* Frustration.		* Frustration.
		+	* Housing Forum seeks unity over suspension of works.
	* Liquidated damages.		* Liquidated damages.
	* Loss and expense.		* Loss and expense.
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	* Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3		* Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3

−	[[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]

Designing Buildings at 10:06, 6 February 2020

2020-02-06T10:06:20Z

← Older revision		Revision as of 10:06, 6 February 2020
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	There are a number of reasons why one or both parties to a contract may seek to terminate the contract.		There are a number of reasons why one or both parties to a contract may seek to terminate the contract.
−
−	~~Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3~~

	= Breach of contract =		= Breach of contract =
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	* Suspension of performance.		* Suspension of performance.
	* Variations.		* Variations.
		+
		+	= External references =
		+
		+	* Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3

	[[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]		[[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]

194.35.233.22 at 09:21, 6 February 2020

2020-02-06T09:21:05Z

← Older revision		Revision as of 09:21, 6 February 2020
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−	[[File:Contract-ice280.jpg]]	+	[[File:Contract-ice280.jpg\|link=File:Contract-ice280.jpg]]

	= Introduction =		= Introduction =
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	There are a number of reasons why one or both parties to a contract may seek to terminate the contract.		There are a number of reasons why one or both parties to a contract may seek to terminate the contract.
		+
		+	Termination of contract, corporate recovery & insolvency RICS ISBN: 978 1 78321 005 3

	= Breach of contract =		= Breach of contract =

Editor at 10:41, 26 October 2018

2018-10-26T10:41:20Z

← Older revision		Revision as of 10:41, 26 October 2018
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		+	[[File:Contract-ice280.jpg]]
		+
	= Introduction =		= Introduction =

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	If the one of the parties to a contract fails to perform as required by the contract, this may constitute a breach of contract. If the breach of contract is serious (a material breach), then the innocent party may also consider that it is discharged from any further obligations under the contract.		If the one of the parties to a contract fails to perform as required by the contract, this may constitute a breach of contract. If the breach of contract is serious (a material breach), then the innocent party may also consider that it is discharged from any further obligations under the contract.

−	Where one party behaves in such a way as to indicate that it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory beach (or fundamental breach) allowing the innocent party to terminate the contract and to sue for damages. Generally the contract will set out what those breaches are, but they might include:	+	Where one party behaves in such a way as to indicate that it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory beach (or fundamental breach), allowing the innocent party to terminate the contract and to sue for damages. Generally, the contract will set out what those breaches are, but they might include:

	* Refusal to carry out work.		* Refusal to carry out work.
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	= Determination =		= Determination =

−	Determination ends the contractor's obligations under the contract, but the contract remains in place, as do the rights of both parties~~. See Determination for more information~~.	+	Determination ends the contractor's obligations under the contract, but the contract remains in place, as do the rights of both parties.

−	~~= Find out~~ more =	+	See Determination for more information.

−	=== Related articles on Designing Buildings Wiki ===	+	= Related articles on Designing Buildings Wiki =

	* Alternative dispute resolution.		* Alternative dispute resolution.

Editor at 12:36, 19 January 2018

2018-01-19T12:36:38Z

← Older revision		Revision as of 12:36, 19 January 2018
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	Frustration occurs when circumstances that are not the fault of either party mean it is impossible to continue with the contract. The contract will come to an end without any party being considered to be in breach. However, parties must be certain that a frustration event has occurred so as not to be in breach of contract.		Frustration occurs when circumstances that are not the fault of either party mean it is impossible to continue with the contract. The contract will come to an end without any party being considered to be in breach. However, parties must be certain that a frustration event has occurred so as not to be in breach of contract.

−	~~NB force~~ majeure provisions might provide for circumstances that could otherwise be considered frustration events, and so result in termination of the contract. Force majeure (for example ~~axceptionally~~ adverse weather conditions) is generally considered a relevant event in construction contracts which will allow for an extension of time and a claim for loss and expense rather than termination. This may be in the interests of both parties.	+	Force majeure provisions might provide for circumstances that could otherwise be considered frustration events, and so result in termination of the contract. Force majeure (for example, exceptionally adverse weather conditions) is generally considered a relevant event in construction contracts which will allow for an extension of time and a claim for loss and expense rather than termination. This may be in the interests of both parties.

−	= Convenience. =	+	For more information, see Frustration.
		+
		+	= Convenience =

	Contracts may allow termination for ‘convenience’. This can be useful for example if the client fails to secure sufficient funding for the project to proceed. However termination for convenience can leave the terminating party open to significant claims by the other party.		Contracts may allow termination for ‘convenience’. This can be useful for example if the client fails to secure sufficient funding for the project to proceed. However termination for convenience can leave the terminating party open to significant claims by the other party.
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	Either party may have the right to terminate at the end of a suspension period, or if a suspension becomes prolonged with no prospect of work re-commencing.		Either party may have the right to terminate at the end of a suspension period, or if a suspension becomes prolonged with no prospect of work re-commencing.

−	See ~~suspension~~ of performance for more information.	+	See Suspension of performance for more information.

	= Determination =		= Determination =

−	Determination ends the contractor's obligations under the contract, but the contract remains in place, as do the rights of both parties. See: Determination for more information.	+	Determination ends the contractor's obligations under the contract, but the contract remains in place, as do the rights of both parties. See Determination for more information.

	= Find out more =		= Find out more =
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	* Force majeure.		* Force majeure.
	* Fair payment practices.		* Fair payment practices.
		+	* Frustration.
	* Liquidated damages.		* Liquidated damages.
	* Loss and expense.		* Loss and expense.

Designing Buildings at 15:27, 11 December 2017

2017-12-11T15:27:29Z

← Older revision		Revision as of 15:27, 11 December 2017
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	* Force majeure.		* Force majeure.
	* Fair payment practices.		* Fair payment practices.
−	* Hamsard 3147 Limited & others v Boots UK Limited (2013) re notice periods.
	* Liquidated damages.		* Liquidated damages.
	* Loss and expense.		* Loss and expense.
		+	* Repudiation.
	* Suspension of performance.		* Suspension of performance.
	* Variations.		* Variations.

	[[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]		[[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]

Designing Buildings at 15:27, 11 December 2017

2017-12-11T15:27:03Z

← Older revision		Revision as of 15:27, 11 December 2017
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−
	= Introduction =		= Introduction =

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	Where one party behaves in such a way as to indicate that it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory beach (or fundamental breach) allowing the innocent party to terminate the contract and to sue for damages. Generally the contract will set out what those breaches are, but they might include:		Where one party behaves in such a way as to indicate that it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory beach (or fundamental breach) allowing the innocent party to terminate the contract and to sue for damages. Generally the contract will set out what those breaches are, but they might include:
−	*Refusal to carry out work.	+
−	*Abandoning the site.	+	* Refusal to carry out work.
−	*Removing plant from the site.	+	* Abandoning the site.
−	*Failure to make payments.	+	* Removing plant from the site.
−	*Employing others to carry out the work.	+	* Failure to make payments.
−	*Failure to allow access to the site.	+	* Employing others to carry out the work.
−	*Failure to proceed regularly and diligently.	+	* Failure to allow access to the site.
−	*Failure to remove or rectify defective works.	+	* Failure to proceed regularly and diligently.
		+	* Failure to remove or rectify defective works.

	Where repudiation is considered to have occurred, the innocent party can either affirm that the contract will continue, or accept the repudiation and so terminate the contract. In either case, they will have the right to claim damages. Either way, it is important that there is some sort of response, as inaction may be considered to be an affirmation of the contract.		Where repudiation is considered to have occurred, the innocent party can either affirm that the contract will continue, or accept the repudiation and so terminate the contract. In either case, they will have the right to claim damages. Either way, it is important that there is some sort of response, as inaction may be considered to be an affirmation of the contract.
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	= Suspension =		= Suspension =

−	Contracts may also allow suspension of performance. The circumstances allowing suspension are generally similar to those allowing termination. Suspension can be useful, for example, if the client has difficulty in raising funds to pay for the work to proceed at the speed anticipated by the contract. In addition, the Housing Grants Construction and Regeneration Act gives the right to suspend performance for failure to make payment that has been notified as due.	+	Contracts may also allow suspension of performance. The circumstances allowing suspension are generally similar to those allowing termination. Suspension can be useful, for example, if the client has difficulty in raising funds to pay for the work to proceed at the speed anticipated by the contract. In addition, the Housing Grants Construction and Regeneration Act gives the right to suspend performance for failure to make payment that has been notified as due.

	Either party may have the right to terminate at the end of a suspension period, or if a suspension becomes prolonged with no prospect of work re-commencing.		Either party may have the right to terminate at the end of a suspension period, or if a suspension becomes prolonged with no prospect of work re-commencing.

	See suspension of performance for more information.		See suspension of performance for more information.
		+
		+	= Determination =
		+
		+	Determination ends the contractor's obligations under the contract, but the contract remains in place, as do the rights of both parties. See: Determination for more information.

	= Find out more =		= Find out more =

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Alternative dispute resolution.
−	*Breach of contract.
−	*Concurrent delay.
−	*Consequential losses.
−	*Construction Act.
−	*Defects.
−	*Extension of time.
−	*Force majeure.
−	*Fair payment practices.
−	*Hamsard 3147 Limited & others v Boots UK Limited (2013) re notice periods.
−	*Liquidated damages.
−	*Loss and expense.
−	*Suspension of performance.
−	*Variations.

−	[[Category:~~Contracts_/_payment~~]]	+	* Alternative dispute resolution.
−	[[Category:~~Other_legislation~~]]	+	* Breach of contract.
−	[[Category:~~Client_procedures~~]]	+	* Concurrent delay.
		+	* Consequential losses.
		+	* Construction Act.
		+	* Defects.
		+	* Determination.
		+	* Extension of time.
		+	* Force majeure.
		+	* Fair payment practices.
		+	* Hamsard 3147 Limited & others v Boots UK Limited (2013) re notice periods.
		+	* Liquidated damages.
		+	* Loss and expense.
		+	* Suspension of performance.
		+	* Variations.
		+
		+	[[Category:Other_legislation]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]

Designing Buildings: moved Termination to Termination in construction contracts

2014-04-15T06:43:10Z

moved Termination to Termination in construction contracts

← Older revision

Revision as of 06:43, 15 April 2014