ABSTRACT

Termination' is a word most commonly used in the context of construction contracts to refer to the ending of the Contractor's employment. The parties have a common law right to bring the contract to an end in certain circumstances, but most standard forms give the parties additional and express rights to terminate upon the happening of specified events. Termination, including reasons, termination procedures and payment, is covered within the Engineering and Construction Contract within the Main Option clauses. The Project Manager then issues a termination certificate to both parties if the author is satisfied that the reason for termination is valid under the contract. The Option Y (UK), which relates to the Housing Grants, Construction and Regeneration Act 1996 and the Local Democracy, Economic Development and Construction Act 2009, the Contractor may exercise the author right under the Act to suspend performance due to late or non-payment.