Contract Termination Case Study

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3.3 Other Cases of Termination:
Other cases of termination were studied according to the investigation done on termination in Construction Contracts through laws and provisions related to the topic.

3.3.1 Termination of Contract immediately because of Contractor’s default.
As mentioned before that Employer may affirm or terminate the contract as a result of Contractor’s Event.
• Reason of Contract termination: The Employer decide to terminate the Contract immediately in the following Cases, which represents the Contractor’s default:
1- Fails to extend the validity of Performance Bond.
2- Not comply with Engineer’s notice within 28 days after receiving it, which is issued for:
a. Remedying or making good the defective Works such as; Plants and Materials.
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Assigns the Contract.
5- Abandons the Contract or establishes the intentions not to continue performing the Contract’s obligations.
6- Gives directly or indirectly any bribe, reward, gift, or commission to any person in relation to the Contract.
7- Bankrupt or going to liquidation.
8- An Administration Order made against him to carry the work under a receiver.
9- Concession to his creditors or Agrees with his creditors to execute the Contract under their committee supervision.

• Clauses
According to sub-clauses of the general conditions (63-1) and (63-2) which are relating to breach of Contract.

• Termination Notice
The Employer issues a notice to terminate the Contractor instantly. Also, he provides a sentry support to secure and expel the contractor from the site. In addition, he liquidates the performance bond as a compensation for damaged afford by the Employer as a result of contract termination, and the non-refundable of the advance payment from the Advance Payment Bond.

• Valuation at the date of termination
A valuation process must be done within 30 days after termination to evaluate the executed work as in Contract and the unused approved materials and equipment in the site.

• Payment after

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