সোমবার, ৬ ফেব্রুয়ারী, ২০২৩

RULE OF CANCELLATION OF CONTRACT BY CONTRACTOR

The Contractor shall be entitled to terminate the Contract if:

(a) the Contractor does not receive the reasonable evidence within 42 days after giving notice regarding the Contractor’s Entitlement to Suspend Work  in respect of a failure to comply with Employer’s Financial Arrangements.

(b) the Engineer fails, within 56 days after receiving a Statement and supporting documents, to issue the relevant Payment Certificate,

(c) the Contractor does not receive the amount due under an Interim Payment Certificate within 42 days after the expiry of the time stated in Payment  within which payment is to be made (except for deductions in accordance with Employer’s Claims,

(d) the Employer substantially fails to perform his obligations under the Contract,

(e) the Employer fails to comply with Sub- Contract Agreement  or Assignment,

(f) a prolonged suspension affects the whole of the Works as described in Prolonged Suspension , or

(g) the Employer becomes bankrupt or insolvent, goes into liquidation, has a receiving or administration order made against him, compounds with his creditors, or carries on business under a receiver, trustee or manager for the benefit of his creditors, or if any act is done or event occurs which (under applicable Laws) has a similar effect to any of these acts or events. In any of these events or circumstances, the Contractor may, upon giving 14 days’ notice to the Employer, terminate the Contract. However, in the case of sub-paragraph (f) or (g), the Contractor may by notice terminate the Contract immediately. The Contractor’s election to terminate the Contract shall not prejudice any other rights of the Contractor, under the Contract or otherwise.

If the Contractor believes that the Employer's failure of performance is sufficiently serious to merit termination under this Sub-Clause, the Contractor should take legal advice before giving notice under this Sub-Clause. A notice of termination  that is subsequently decided to be unjustified would constitute a breach of contract by the Contractor. It may also be prudent for the legal adviser to prepare the notice of termination.

The notice of termination may specify the Employer's failures, although it may not be essential to classify them under the items listed in the sub-paragraphs. If the Contractor gives notice and then wishes to withdraw it, the Parties may agree that the notice shall be of no effect and that the Contract is not terminated.

If the notice only takes effect 14 days later, and not "immediately", it may be necessary for the Contractor to be instructed (for example) to make the Works safe and secure: (a)). In some cases, the Contractor's compliance with these instructions may be required by the Country's safety laws.

Source: The FIDIC Contracts Guide

CONDITIONS OF CONTRACT FOR CONSTRUCTION
CONDITIONS OF CONTRACT FOR PLANT AND DESIGN-BUILD
CONDITIONS OF CONTRACT FOR FOR EPC/TURNKEY PROJECTS

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