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Construction Law/FIDIC Short Form - Termination & Adjudication

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Question
In the Fidic Short Form 1999, does Clause 15.1 (including any valuation or other decision of the Employer) cover Termination by Employer (Clause 12.1)?
Can a contractor use adjudication if the Employer has terminated the contract because he failed to proceed expeditiously and without delay?

Answer
Dear Hannah,

Thank you for this question.

In short, the answer is YES to both parts of your question.

The dispute resolution provisions are intended to pertain to "any dispute or difference (arising) out of or in connection with the Contract". The ambit is very wide. I suggest that the phrase "including any valuation" is intended as a specific example only without the intention of limiting the effectiveness of the clause. The phrase "or other decision of the Employer" supports the wide interpretation to be given.

Termination of contracts is a difficult area and the Parties get things wrong in this respect in the majority of cases. If the Contractor considers the termination to be wrongful in the circumstances he has a right to challenge that bout he should exercise care in deciding whether to challenge it under the Contract or in law.

I hope that this assists you.


Kind regards,
John Dowse

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John Dowse

Expertise

Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.

Experience

Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Organizations
Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Publications
Various UK and International construction and legal publications.

Education/Credentials
LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

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