4: CONTRACTUAL PROVISIONS FOR DETERMINATION

156 General

Construction contracts commonly contain provisions under which in certain circumstances one or both parties may determine the contract or the contractor’s employment under it1. Such provisions normally specify the events on which the power of determination arises, the time and manner of its exercise and the effects of determination upon the rights and obligations of the parties. Where they confer a right of determination upon the employer, such provisions are sometimes called forfeiture clauses.

A common type of determination clause is one which entitles the employer to determine on the basis of some default by

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