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Construction Law/Termination of Contract

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Question
Dear Ghadban,

I am writing to you from Afghanistan and i am managing World Bank funded projects under WB conditions of Contract. we have four projects with one contractor and we are going to terminate one of it because of a fundamental breach of contract ( Contractor stops the work for more than 28 days without prior approval of project manager and the delay is not shown in the work program), as per conditions of contract 30% of the remaining work must be deducted as penalty from the contractor but the physical progress is only 15% mean that 85% work is remaining and the 30% of the remaining work will be almost 25%. we have only 10% performance guarantee and 10% of the 15% as retention. my question is that the available money is not sufficient to be confiscated, who can we proceed with this termination and how can we recover the rest of the money.

Thanks

Answer
Dear Mohammad
The above text does not include all the information needed to give you the best answer. I need the Condition of contract (you can send it to me at: waelyg@gmail.com
and I need to know if the contractor was paid for the first 15% and if the 4 contracts are tied together or not. In general, you have to be very careful when you terminate your contractor and you should follow exactly all perquisites for such action. More important, you have to calculate the benefit of terminating an existing contractor and appointing another specially in terms of lost time.
Cheers

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Wael Ghadban

Expertise

Will respond to queries related to Engineering Contracts subject to FIDIC or other Conditions, tendering and contracting, project management, residential and commercial construction, and general Civil Engineering questions. Can answer most questions related to aviation and airports as related to the Airports, Facility management.

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Project construction and Management Civil Aviation - Airports Airport Pavement Design and Use Residential and commercial construction ICAO and FAA regulation

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MS Civil Engineering

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