NEC contracts—termination
Produced in partnership with DAC Beachcroft
NEC contracts—termination

The following Construction practice note produced in partnership with DAC Beachcroft provides comprehensive and up to date legal information covering:

  • NEC contracts—termination
  • Relationship with common law termination
  • Termination by the Client
  • Contractor default
  • Force majeure
  • Termination at will
  • Termination by the Contractor
  • Termination by either party
  • Consequences of termination—generally
  • Consequences of termination—procedures
  • More...

NEC contracts—termination

The NEC contracts contain detailed provisions for termination, setting out the grounds on which the parties may terminate and the consequences thereof (although they are less extensive than those found in the JCT contracts). Under the NEC contracts, it is the Contractor’s obligation to Provide the Works that is terminated, rather than the contract itself. This distinction is designed to ensure that the post-termination provisions contained in the contract survive termination. Even though the Contractor’s obligation to provide the works is terminated, in certain circumstances it may be required to pay the Client the additional costs of completing the works.

This Practice Note refers to the clauses set out in the NEC3 and NEC4 Engineering and Construction Contract, but comparable provisions are found within the other NEC contracts. It should be read alongside Practice Note: Termination of a construction contract.

For guidance specific to termination under the NEC Professional Service Contract and the NEC Supply Contract, see also Practice Notes: NEC Professional Service Contract and NEC Supply Contract respectively.

Termination should always be considered very carefully. If the termination is wrongful, or the correct procedures are not correctly followed to the letter, the purported termination may amount to a repudiatory breach of contract by the party seeking to terminate. In any event, if the other party disputes the purported termination, the terminating party could find itself

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