FIDIC contracts 2017—termination by the Contractor

Produced in partnership with Victoria Tyson of Corbett & Co

The following Construction practice note produced in partnership with Victoria Tyson of Corbett & Co provides comprehensive and up to date legal information covering:

FIDIC contracts 2017—termination by the Contractor
Who can terminate?
Grounds for termination by the Contractor
Notice of termination
Post termination
Payment on termination
Termination as a result of an Exceptional Event

FIDIC contracts 2017—termination by the Contractor

This Practice Note considers termination by the Contractor under the FIDIC Red, Yellow and Silver Books 2017. It does not address the right to terminate at law. Further, the governing law of the Contract may affect the operation of some of the clauses.

For more information about termination by the Contractor in the pre-2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts (pre-2017 editions)—termination by the Contractor.

Who can terminate?

Both the Employer and the Contractor may terminate the Contract. Clause 15 sets out the procedure for Employer termination and Clause 16 sets out the procedure for Contractor termination. The Employer may also terminate under Sub-Clause 11.4 [Failure to Remedy Defects], and both Parties may terminate under Sub-Clause 18.5 [Optional Termination] and Sub-Clause 18.6 [Release from Performance under the Law].

For more information about termination by the Employer, see Practice Note: FIDIC contracts 2017—termination by the Employer.

Grounds for termination by the Contractor

Sub-Clause 16.2 [Termination by Contractor] lists ten grounds for termination by the Contractor in the FIDIC Red Book 2017 and the FIDIC Yellow Book 2017, and nine in the FIDIC Silver Book 2017:

•
the Contractor does not receive the reasonable evidence within 42 days after giving a Notice under Sub-Clause 16.1 [Suspension by Contractor] in respect of a failure to comply with Sub-Clause 2.4 [Employer’s Financial Arrangements]
This

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