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FIDIC contracts 2017—termination by the Contractor
Produced in partnership with Victoria Tyson of Howard Kennedy (acquired Corbett & Co.)
Practice notesFIDIC contracts 2017—termination by the Contractor
Produced in partnership with Victoria Tyson of Howard Kennedy (acquired Corbett & Co.)
Practice notesThis 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 main grounds for termination
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