Civil Engineering Reference
In-Depth Information
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under the SBC only, delay in receipt of any permission or approval for the purposes
of any statutory provisions and any decision of a relevant authority thereunder
which controls the right to develop the site ('Development Control Requirements')
necessary for the Works to be carried out or proceed, which delay the Contractor
whohastakenallpracticablestepstoavoidorreduce.
Upon the occurrence of one or more of these events, and once the period specified in
the Contract Particulars has expired, either party may give notice to the other to the
effect that unless the suspension ceases within seven days after receipt of that notice
the employment of the Contractor may be terminated. This is done by way of further
notice, see clause 8.11.
The Contractor is not entitled to give notice where the loss or damage to the Works
occasioned by one or more of the Specified Perils is caused by negligence or default
on their part or on the part of any of the Contractor's Persons. The consequences of
termination under this clause are identical to those where the Contractor terminated,
see clause 8.12 and Section 9.4.5.
9.4.7 Termination by the parties under the NEC3
Under the NEC3, if either party wishes to terminate the Contractor's obligation to
Provide the Works he notifies the Project Manager and the other Party, giving details
of his reasons for terminating, the Project Manager then issues a termination certifi-
cate to both Parties promptly if the reason complies with the contract, see clause 90.1.
The permitted reasons for termination are set out in clause 91. 91.There are 21 permitted
reasons in total, covering:
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insolvency (reasons 1-10) for which either party can terminate;
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defaults by the Contractor which he has failed to put right within four weeks of
notification by the Project Manager (reasons 11-15), in terms of which only the
Employer can terminate. The defaults include substantially failing to comply with
his obligations, not providing a bond or guarantee which the contract requires,
appointing a Sub-contractor for substantial work before the Project Manager has
accepted the Sub-contractor, substantially hindering the Employer or others, and
substantiallybreakingahealthorsafetyregulation.
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failurebytheEmployertomakepaymenttotheContractorofanamountdueunder
thecontractwithin11weeksofthedatethatitshouldhavebeenpaid(reason16),in
terms of which only the Contractor can terminate. In the 2005 edition of the NEC3,
that clause referred to a failure by the Employer to make payment to the Contractor
ofanamountcertiiedbytheProjectManagerwithin13weeksofthedateofthe
certificate.
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where the Parties have been released under the law from further performance of
the whole of the contract (reason 17) for of which either party can terminate;
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an instruction given by the Project Manager to the Contractor to stop or not to
start any substantial work or all work has not been followed within 13 weeks by
a further instruction allowing the work to re-start or start. If the instruction was
