Construction Law/Termination

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Question
Dear Sir,

Background:
Contract scope is for provision of services on Call-off basis for 5 yrs contract term. Request/Work Order(RO)is issued as and when required basis for maint. of facilities (building maint. services). As per Contract Schd of Prices the  BOQ for various type services and corresponding unit rates are indicated. One line item in the  Preliminaries  is for Maint. of Contractor temp. camp facilites with unit rate/month. Contract is already past 3rd yr. now. However, all the BOQ related to services are all already exhausted as indicated in the Schd. of Prices except for line item for maint. of contractor temp. camp facilities. so, the Company/client is paying  contractor for temp. facilities monthly without having Work Order issued. Contract is silent if the BOQ is all exhausted such payment for for temp. facilities shall not be paid.  

I am in the client side. My question is, as no more Work Order to be issued, can we terminate the contract which is supposed to finish till 2016 to prevent paying for maint. temp. facilities. Termination clause says; for contractors default, client convenience etc. Also can contractor claim for full payment of the temp. facilities.

Thank you for time and to hearing from you.

kind regards.
Rotor"

Answer
Dear Rotor,

You can always terminate a contract, but how much will it cost.  You have to agree the cost effect with your contractor.  Perhaps the Contractor would be happy to terminate the contract, if it is no longer profitable.  Alternatively, the Employer might want to find further funds if there is likely to be a need for further works.  

Construction Law

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Peter M. Elliott

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First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

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