ABSTRACT
The idea of terminating the contractor’s employment is something that most parties would seek to avoid if at all possible. Dealing with the consequences of termination, and the prospect of having to engage another contractor to complete a half-finished building, are difficult and stressful, and generally parties are better off trying to resolve their differences. The clauses relating to termination are identical in both versions of the contract. The concept of a ‘material breach’ giving a right to terminate is something that will be unfamiliar to those who normally use Joint Contracts Tribunal contracts. Either party may terminate the contractor’s employment due to insolvency, bankruptcy or frustration. The contracts explain how the balance due is to be calculated in situations where the client has terminated the contractor’s employment, and in situations where the contractor initiated the termination. If the contractor initiated the termination it is entitled to all costs and losses incurred.
