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Construction Law/Termination 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 Jubran

In case of termination by the Contractor, the contractor is not liable for any guarantees except any 'Assignment of Benefit of Agreement' under sub clause 63.4 of the COC. This is irrespective of the fact whether the termination was done by the Employer or the Contractor.

I hope the question is answered.


Abdul Majid Khan

Construction Law

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Abdul Majid Khan


I am interested in questions related to time Extension, Liquidated Damages,variations, price adjustments,payments, disputes and Dispute Board under FIDIC IV, FIDIC 1999 and FIDIC 2006 Harmonized Documents.


I have been heading the Construction Management Division and Contract Divisions of National Engineering Services Pakistan (PVT) Limited, NESPAK, the largest Consulting Engineering Firm in Pakistan, for more than seven years and two years respectively. I have also worked as "The Engineer" on a number of projects. I have been working in Saudi Arabia for about seven years on a road projects. Additionally I worked as Arbitrator and am member of few Dispute Boards in individual capacity on Asian Development Bank funded projects.

Inland and in Middle East. I have worked with National Engineering Services Pakistan (Pvt) Limited (NESPAK)as my Employer for more than 27 years in Pakistan. In Saudi Arabia I worked for Rashid Engineering, Consulting Engineers during 80s. After retirement I provided advisory services to NESPAK on technical and contractual matters to its various divisions and lately I was appointed as Advisor to Managing Director NESPAK on Technical and Contractual matters. Currently I work as Free Lance Contract Specialist on Fidic Form of Contracts.

I am a graduate with a B.E (Civil Engineering) degree. My year of graduation is 1970.

Awards and Honors
A few appreciation Letters and Honorariums during my service in NESPAK. I remained member of Administrative Committee and Board of Management of NESPAK. I had been part of the Management Committee in the absence of Managing Director.

Past/Present Clients
Most of the Clients used to be Government Departments, Corporations and Authorities. In Saudi Arabia the Client was Ministry of Communications. As Arbitrator and Dispute Board (DB) member, I provide services to various Government Departments and Contractors.

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