ABSTRACT
Most building contracts include provisions to deal with foreseeable situations which might otherwise be breaches. Where it is impossible to expect any continued performance, the injured party might allege that the contract has been repudiated. Repudiation occurs when one party makes it clear that it no longer intends to be bound by the provisions of the contract. Under MW16 the employer has the right to terminate the contractor’s employment in the event of specified defaults by the contractor. The grounds for termination by the employer under clause 6.4.1 include failing to proceed diligently, wholly or substantially suspending the carrying out of work and failing to comply with obligations under the CDM Regulations. One of the defaults listed in clause 6.4.1.2 is that the contractor ‘fails to proceed regularly and diligently’. This is notoriously difficult to establish as seen in London Borough of Hounslow v Twickenham Garden Developments.
