Civil Engineering Reference
In-Depth Information
Where the Contractor's employment is terminated by reason of default by the
Employer or the insolvency of the Employer, the Contractor shall as soon as rea-
sonably practicable prepare and submit an account or, not later than two months
after the date of termination, provide the Employer with all documents necessary for
the Employer to prepare the account, which the Employer shall do with reasonable
dispatch (and in any event within three months of receipt of such documents).
The account, which is prepared in accordance with clause 8.12.3, sets out the
total value of the work properly executed at (and in the SBC/DB, of any design
work properly carried out before) the date of termination; any sums ascertained
in respect of direct loss and/or expense (whether ascertained before or after the
date of termination); the reasonable costs of removal of any temporary buildings,
plant, tools and equipment; the cost of materials or goods (including Site Materials)
properly ordered for the Works for which the Contractor then has paid or is legally
bound to pay; and any direct loss and/or damage caused to the Contractor by the
termination.
After taking into account amounts previously paid to the Contractor, the Employer
is required to pay to the Contractor the amount properly due in respect of the account
within 28 days of its submission by the Employer to the Contractor (or vice versa),
without deduction of any Retention. Payment by the Employer for any such materials
andgoodsasarereferredtointheaccountshallbesubjecttosuchmaterialsandgoods
thereupon becoming the property of the Employer.
Certain insolvency events entitle the Contractor to terminate. hese are considered
in Section 9.8.
9.4.6 Termination by either party under the SBC and the SBC/DB
Clause 8.11 of the SBC provides for certain circumstances which will entitle either
the Employer or the Contractor to terminate the employment of the Contractor. Each
of the specified circumstances must arise before the date of practical completion and
must cause the carrying out of the whole or substantially the whole of the uncom-
pleted Works to be suspended for the relevant continuous period of time set out in
the Contract Particulars. The events, provided for by clause 8.11.1, are:
•
force majeure;
•
loss or damage to the Works occasioned by any of the Specified Perils set out in
clause 6.8;
•
civilcommotion(whichhasbeendeinedasastagebetweenriotandwar,see
Levy
v.
Assicurazioni Generali
(1940)) or the threat of terrorism and/or the activities of the
relevant authorities in dealing with such event or threat;
•
under the SBC, Architect's instructions under clauses 2.15, 3.14 or 3.15 issued as a
result of the negligence or default of any Statutory Undertaker or in the SBC/DB,
Employer's instructions under clauses 2.13, 3.9 or 3.10 issued in the same circum-
stances;
•
the exercise by the United Kingdom Government of any statutory power which
directly affects the execution of the Works; and
