ABSTRACT
In design and build procurement, the consequences of any serious breakdown of relations resulting from default are likely to be even more complex and difficult to resolve than under traditional procurement. Termination can be initiated by the employer in the event of specified defaults by the contractor, such as suspending the works or failing to comply with the Construction Design and Management Regulations, or in the event of the insolvency of the contractor. One consequence of termination is that it often takes time for the contractor to effect an orderly withdrawal from site, and for the employer to establish the amounts outstanding before final payment. In the event of termination, the contractor must provide the employer with copies of all drawings and other information completed prior to termination. Termination by the contractor is optional in the case of the employer’s bankruptcy or insolvency.
