FIDIC contracts (pre-2017 editions)—termination by the Contractor
Produced in partnership with Victoria Tyson of Corbett & Co
FIDIC contracts (pre-2017 editions)—termination by the Contractor

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 (pre-2017 editions)—termination by the Contractor
  • Who can terminate?
  • Termination by the Contractor for cause
  • Grounds for termination for cause by the Contractor
  • Post termination
  • Payment on termination
  • Termination by the Contractor as a result of Force Majeure

FIDIC contracts (pre-2017 editions)—termination by the Contractor

This Practice Note considers termination by the Contractor under the FIDIC Red, Yellow and Silver Books 1999, the Gold Book 2008 and the Pink Book 2010. 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.

In relation to the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—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. Termination is also addressed in Sub-Clauses 9.4, 11.4 and 19.6, and in Sub-Clause 10.7 of the FIDIC Gold Book. For more information about termination by the Employer, see Practice Note: FIDIC contracts (pre-2017 editions)—termination by the Employer.

The Contractor may terminate for cause or as a result of Force Majeure. It may not terminate for convenience.

Termination by the Contractor for cause

Grounds for termination for cause by the Contractor

When the Contractor exercises its rights under Sub-Clause 16.2, it will probably need to justify its position before a Dispute Adjudication Board (DAB) and perhaps, in arbitration too. A detailed assessment of the whole situation by an adjudicator or arbitrator and the lawyers for both sides may make what

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