{"id":519,"date":"2021-06-08T21:12:45","date_gmt":"2021-06-08T21:12:45","guid":{"rendered":"http:\/\/legalblog.ie\/?p=519"},"modified":"2021-06-08T21:21:35","modified_gmt":"2021-06-08T21:21:35","slug":"termination","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/termination\/","title":{"rendered":"Termination"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/termination\/#Termination_and_Discharge\" title=\"Termination and Discharge\">Termination and Discharge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/termination\/#Contractors_Breaches\" title=\"Contractor&#8217;s Breaches\">Contractor&#8217;s Breaches<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/termination\/#Procedure_and_Consequences\" title=\"Procedure and Consequences\">Procedure and Consequences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/termination\/#Employers_Breaches\" title=\"Employer&#8217;s Breaches\">Employer&#8217;s Breaches<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/termination\/#Procedure_and_COnsequences\" title=\"Procedure and COnsequences\">Procedure and COnsequences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/termination\/#No-Fault_Termination\" title=\"No-Fault Termination\">No-Fault Termination<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/termination\/#Termination_of_Sub-Contracts\" title=\"Termination of Sub-Contracts\">Termination of Sub-Contracts<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Termination_and_Discharge\"><\/span>Termination and Discharge<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Building and engineering contracts generally provide for termination of the contractor\u2019s employment in the case of specified serious breaches.\u00a0 There is generally a procedure involving notice.\u00a0\u00a0 There will commonly be a warning period upon the expiry of which, the termination takes effect if there has been no intermediate remediation.<\/p>\n<p>Typically, the procedure discharges the obligations of one party.\u00a0 The provisions of the contract may continue to apply in respect of payments, compensatory payments and other consequences.<\/p>\n<p>Where a contract provides a \u00a0procedure for termination, this may and usually will by implication exclude common-law rights of termination, except where the other party demonstrates an intention not to be bound by the contract, effectively, committing a repudiatory breach. Other courts have taken the view that the contractual rights of termination are in addition to the common-law rights.\u00a0 The contracts may expressly preserve the common-law rights.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Contractors_Breaches\"><\/span>Contractor&#8217;s Breaches<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The contract may specify certain fundamental breaches that entitle the contractor to terminate the contract.\u00a0 They include the following:<\/p>\n<ul>\n<li>a failure to give possession of the site,<\/li>\n<li>non-payment of sums due of a \u00a0certain duration as specified,<\/li>\n<li>withholding certificates,<\/li>\n<li>interference with the contractor in undertaking the work.<\/li>\n<\/ul>\n<p>The following may constitute fundamental breaches by the contractor entitling the employer to terminate:<\/p>\n<ul>\n<li>abandonment and the suspension of work,<\/li>\n<li>very serious defects in the work such as to that there is no substantial performance by the contractor,<\/li>\n<li>delay.<\/li>\n<\/ul>\n<p>Construction contracts generally provide rights of termination for the employer for certain key defaults including,<\/p>\n<ul>\n<li>suspension of work without reasonable cause,<\/li>\n<li>failure to proceed regularly and diligently,<\/li>\n<li>failure to comply with the administrator&#8217;s instruction to remove defective work,<\/li>\n<li>unauthorized contracting and assigning,<\/li>\n<li>failure to comply with the health and safety regulations.<\/li>\n<\/ul>\n<p>The contractor&#8217;s insolvency is commonly a basis of termination.\u00a0 Insolvency will generally end the ability of the contractor to perform.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Procedure_and_Consequences\"><\/span>Procedure and Consequences<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A contract will provide procedures in respect of termination on foot of a default.\u00a0 The contract administrator may issue a notice specifying the default.<\/p>\n<p>If the default continues for a specified period, then the employer may have a right within a certain period to terminate employment by giving notice.\u00a0 Where termination does not take place, the right may arise again on repetition of the default.\u00a0 Under some form of contract, it is not necessary to repeat the procedure in the event of repetition of the breach.<\/p>\n<p>The contract will usually spell out the consequence of termination.\u00a0 The employer may generally employ others to complete the work, making use of the contractor\u2019s materials, plant and equipment to the extent that it is available.<\/p>\n<p>The contractor\u2019s equipment must be removed from the site if instructed.\u00a0 The contractor is to provide copies of the design document.\u00a0 The employer may require an assignment of subcontracts and contracts for the supply of material.<\/p>\n<p>The contractor is not entitled to further payments until works have been completed by another contractor or at some other later point in time. A contractor might be entitled to any difference between what he would have earned by completing the contract and what the breach has cost.\u00a0 If as commonly so, the employer&#8217;s losses exceed what would have been due to the contractor, the contractor is liable for the difference.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Employers_Breaches\"><\/span>Employer&#8217;s Breaches<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A contractor is given grounds of termination under standard contracts.\u00a0 This includes in particular the following breaches by the employer:<\/p>\n<ul>\n<li>failure to pay the amounts due within time limits,<\/li>\n<li>interference by the employer with the issue of certificates by the contracts administrator, unauthorized assignment,<\/li>\n<li>failure to given possession,<\/li>\n<li>failure to comply with obligations in relation to health and safety,<\/li>\n<li>suspension of the whole or part of the works by reasons of instructions from the contractor, dealing with discrepancies for a prolonged period.<\/li>\n<li>any impediment, prevention or default by the employer, administrator or other persons employed by the employer unless due to the contractor\u2019s negligence.<\/li>\n<li>the employer\u2019s insolvency.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Procedure_and_COnsequences\"><\/span>Procedure and COnsequences<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In each case, the contract specifies a procedure involving notice by the contractor to the employer.\u00a0 In some cases, a warning notice must be given and if it is not complied with, the right of termination arises.\u00a0 As is the case with notices by the employer, there may be requirements that they should not be given unreasonably or vexatiously.<\/p>\n<p>Where the contractor has terminated the contract, he must remove all equipment and materials including subcontractors from the site as soon as reasonably practicable and safe.\u00a0 He must provide the employer with copies of the contractor&#8217;s design documents.<\/p>\n<p>In relation to payment, the contractor is entitled to<\/p>\n<ul>\n<li>value of the work completed<\/li>\n<li>work begun but not completed,<\/li>\n<li>direct loss and expense for \u00a0which the contractor has a claim,<\/li>\n<li>cost of removal,<\/li>\n<li>cost of materials ordered which on payment become the employer\u2019s property,<\/li>\n<li>direct loss and damage caused to the contractor.<\/li>\n<\/ul>\n<p>The contractor is to provide an account of the sums due.\u00a0 They must be paid within 28 days of the submission of the account without deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"No-Fault_Termination\"><\/span>No-Fault Termination<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Contracts may allow termination on the grounds which are the fault of neither party.\u00a0\u00a0 In these cases, the position is more neutral because of neither party is at fault.\u00a0\u00a0 Once again, the grounds may not be exercised disproportionately unreasonably or vexatiously.<\/p>\n<p>The contract will describe the circumstances in which the rights arise.\u00a0 They will typically include the following:<\/p>\n<ul>\n<li>Force majeure<\/li>\n<li>loss and damage by certain risks, civil commotions.<\/li>\n<\/ul>\n<p>The consequences of termination are broadly similar to those in respect of termination by the contractor.\u00a0 However, a contractor is not entitled to compensation for direct loss or expense arising out of termination, in most cases.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Termination_of_Sub-Contracts\"><\/span>Termination of Sub-Contracts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Generally, the termination provisions in subcontracts mirror those in the principal contracts.\u00a0 In some cases, there may be significant differences. Determination of the subcontractor\u2019s employment by the main contractor is provided for under certain standard appointments.\u00a0 They are similar to those in which the employer to employers may terminate the main contract.<\/p>\n<p>The subcontractor may terminate the contract if<\/p>\n<ul>\n<li>the main contractor suspends without reasonable cause either wholly or substantially the carrying out of the main contract works,<\/li>\n<li>fails to proceed without reasonable cause with the main contract work so that reasonable progress of the subcontractor is seriously affected,<\/li>\n<li>fails to comply with health and safety legislation,<\/li>\n<li>fails to comply with the terms of the sub-contract.<\/li>\n<\/ul>\n<p>There are procedures for termination similar to those in the main contracts.<\/p>\n<p>If it becomes impossible to perform a contract due to some external event, performance becomes impossibly illegal or radically different from that contemplated, the common law doctrine of frustration may apply. Neither party must be at fault.<\/p>\n<p>Generally in standard form contract matters which might otherwise be the subject of the doctrine of frustration are specifically provided for.\u00a0 If this is the case, then the option of common law frustration will not apply.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-519\" data-postid=\"519\" class=\"themify_builder_content themify_builder_content-519 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Termination and Discharge Building and engineering contracts generally provide for termination of the contractor\u2019s employment in the case of specified serious breaches.\u00a0 There is generally a procedure involving notice.\u00a0\u00a0 There will commonly be a warning period upon the expiry of which, the termination takes effect if there has been no intermediate remediation. Typically, the procedure [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[44],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/519"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=519"}],"version-history":[{"count":4,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/519\/revisions"}],"predecessor-version":[{"id":523,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/519\/revisions\/523"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}