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Construction Law/Terminate by contractor


I am Contacting you to inquire about an issue related to Defects Liability Guarantee in the case of Termination by  Contractor as clause 16.2 in Fidic 1999 Red book in this case ،
The Employer substantially fails to perform his obligations under the Contract in Financial Arrangements as clause 16.2.a , So the Contractor notice to the Employer to terminate the Contract , The two parties ( The Employer and The Contractor ) agreed to Termination the Contract and Calculate all the works Executed , to be paid at contract prices ,
The Question is ,
Does the contractor is required to Submit the Defects Liability Guarantee of these works Executed , for one year from the date of Taking Over of the Works .
Best Regards

Dear Shadi,

Thank you for your question.

Sub-Clause 16.2 as indeed al the FIDIC '99 books, do not include any "Defects Liability Guarantee".

Are you referring in fact to the "Performance Security", described under Sub-Clause 4.2?

If yes, please read that Sub-Clause, as well as 15.4 [Payment after Termination] and all Sub-Clauses related to Retention Money and release of Performance Security.

Briefly, once Contract terminated, Contractor provides no further guarantee for the Works - eventual exception under the Law of the Country, in case of collapse, or other major failure.

Apologise for my fast answer, I am in my way to the airport.

Hope that helps.

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Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.


Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List and of DRBF Chapter for Eastern Europe Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List Member of “” volunteers pool Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States

- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme ( - FIDIC Accredited Adjudicator

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