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

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 Employer
  • Who can terminate?
  • Termination by the Employer for cause
  • Grounds for termination for cause by the Employer
  • Other grounds
  • Notice of termination
  • The effect of termination
  • The financial consequences of termination
  • Termination by the Employer for convenience
  • Grounds for termination for convenience by the Employer
  • More...

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

This Practice Note looks at the Employer’s rights to terminate under the FIDIC Red, Yellow and Silver Books 1999, the Gold Book 2008 and the Pink Book 2010.

In relation to the 2017 editions of the Red, Yellow and Silver Books, see Practice Note: FIDIC contracts 2017—termination by the Employer.

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 Contractor, see Practice Note: FIDIC forms of contract (pre-2017 editions)—termination by the Contractor.

The Employer may terminate for cause or for convenience or as a result of Force Majeure.

Termination by the Employer for cause

Grounds for termination for cause by the Employer

Sub-Clause 15.2 provides several ways for the Employer to terminate the Contractor. The FIDIC Red, Pink (MDB) and Yellow Books have the same grounds. The FIDIC Silver Book has fewer, and the FIDIC Gold Book has more. Some of these grounds are easier to apply than others and as it is likely that an Employer’s termination will be contested, the Employer must approach the possibility of termination with great care.

The Employer must be very

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