ABSTRACT

Termination is a word most commonly used in the context of construction contracts to refer to the ending of the Contractors employment. The author advises against termination, unless there is no other option for the Parties. The Parties should therefore always view termination as an entitlement not an obligation. It is also important to note that neither party should attempt to terminate employment under the contract unless they are sure that the provision is available within the contract for a particular default and they follow the provisions to the letter. The Project Manager then issues a termination certificate to both parties if it is satisfied that the reason for termination is valid under the contract. The Parties to the ECC should also consider how termination of their contract affects Subcontractors. If the Contractor is the defaulter, termination occurs and the Client wishes to proceed with the works, any subcontracts would be assigned to the Client.