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 if at all possible. An absence of a day or two would probably not be significant, but if there is no response to enquiries from the contract administrator, it would be sensible for the contract administrator to issue a notice of termination straight away. The client already has a remedy for slow progress and late completion, in the form of liquidated damages, so a generally poor performance is not normally considered sufficient to justify termination.