Termination and suspension

A construction contract may be discharged, terminated or determined in a number of ways. These principally include:

•
by performance
•
by agreement/release
•
as a result of a misrepresentation/fraud (see Practice Note: Misrepresentation—rescission as a remedy)
•
frustration (see Practice Note: Discharge by frustration)
•
at common law for 'repudiatory' breach of contract ('repudiation') (see Practice Note: Repudiation of contract), or
•
pursuant to a contractual power to terminate the contract, for example:
1. ◦
  for breach of contract
2. ◦
  at will
3. ◦
  on insolvency (see below)

Practice Note: Termination of a construction contract considers termination of a construction contract at common law for repudiatory breach, and termination by operation of a contractual provision either for breach or at will. See also Practice Note: Material breach in construction contracts, which looks specifically at contractual provisions allowing a party to terminate (or suspend works) for ‘material breach’.

A useful summary of the issues to consider is also available in Checklist: Termination of a construction contract—checklist.

In relation to consultant appointments, see Practice Note: Termination of a consultant's appointment.

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