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Last edited 15 Feb 2018
Determination in construction contracts
The term ‘determination’ in relation to construction contracts relates ending the contractor’s employment under the contract. Contracts may provide for determination of the contractor’s obligations under the contract by the employer or the contractor if there is a breach of contract by the other party.
However, the contract itself remains in place, and so do the rights of both parties.
This is as opposed to the termination of the contract, which brings the contract itself to an end. This may happen, for example, if one of the parties to the contract behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory breach (or fundamental breach) allowing the innocent party to terminate the contract and to sue for damages.
See also: Expert determination.
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