ABSTRACT
This chapter involves the contractor completely failing to carry out any work, or working so badly or slowly that it becomes clear that no contractual targets to be approached. From the employer's side, failure to pay agreed interim amounts, not allowing access to the site or physically impeding progress might have the same effect. Insolvency leads to poor performance and termination is the result. The position of fundamental breach of contract and termination, with a separate consideration of insolvency and bankruptcy. As with other contractual events, the JCT contracts endeavour to avoid recourse to general law and the courts on the occurrence of major failure in performance. In addition to fundamental breach of the contract by either party, it become incapable of performance because of 'frustration. Liquidation generally refers to incorporated firms and is dealt with a different part of the Insolvency Act 1986. The retention is a debt owed to the contractor and should be paid to the liquidator.
