ABSTRACT
Sophisticated construction contracts will generally contain clauses giving contractor and employer express rights of termination. Because of the serious consequences of termination, generally such clauses are strictly construed: any stated preconditions to a right to terminate must usually be followed to the letter if the termination is to survive scrutiny by a court or arbitrator. The standard forms also make provision for the contractor to terminate the contract. In particular, it is to be noted that provision is made for termination in the event of late payment or non-payment by the employer. It is a matter of construction in each case whether it is the intention of the parties that an aggrieved party should be limited to rights of termination granted under a contract to the exclusion of any common law rights. If a contract contains express termination provisions, usually there will also be express provisions for what is to follow upon termination.
