Termination of Construction contract .

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Termination of Construction contract .

cancel the contract

*** *** If the Contractor being an individual or a firm commit any "Act of insolvency" or being an Incorporated Client shall have an order for compulsory winding up made against it or pass an effective resolution for winding up voluntarily or subject to the supervision of the court and of the official assignee of the liquidator in such acts of insolvency or winding up shall be unable within seven days after notice to him requiring him to do so, to show to reasonable satisfaction of the Architect that he is able to carry out and fulfil the contract, and to give security thereof, if so required by the Architect, or if the Contractor (whether an individual firm or incorporated Client) shall suffer execution to be issued or shall suffer any payment under this contract to be attached by or on behalf of any of the creditors of the Contractor, or shall assign or sublet this contract without the consent in writing of the Architect first obtained, or shall charge or encumber this contract or any payments due or which may become due to the Contractor thereunder, or if the Architect shall certify in writing to the Client that the Contractor
i. Has abandoned the contract or
ii. Has failed to commence the works, or has without any lawful excuse under these conditions suspended the progress of the works for fourteen days after receiving from the Architect written notice to proceed, or,
iii. Has failed to proceed with the works with such diligence and failed to make such due progress as would enable the works to be completed within the time agreed upon, or
iv. Has failed to remove materials from the site or to pull down and replace work for seven days after receiving from the Architect written notice that the said materials or work were condemned and rejected by the Architect under these conditions, or
v. Has neglected or failed persistently to observe and perform all or any of the acts, matters or things by this contract to be observed and performed by the Contractor for seven days after the written notice shall have been given to the Contractor requiring the Contractor to observe or perform the same, or
vi. Has to the detriment of good workmanship or in defiance of the Architect's instructions to the contrary sublet any part of the contract.
Then and in any of the said cases the Client with the written consent of the Architect may notwithstanding any previous waiver, after giving seven days' notice in writing to the Contractor, determine the contract, but without hereby affecting the powers of the Architect or the obligations and liabilities of the contract the whole of which shall continue in force as fully as if the contract had not been so determined and as if the works subsequently executed had been executed by or on behalf of the Contractor. And further, the Client under instructions of the Architect, by his agents or servants may enter upon and take possession of the works and all plant, tools, scaffoldings, sheds, machinery, and other power utensils and materials lying upon the premises or the adjoining lands or roads, and use the same as his own property or may employ the same by means of his own servants and workmen in carrying on and completing the works or by employing any other Contractors or other person or persons to complete the works, and the Contractor shall not in any way interrupt or do any act, matter or thing to prevent or hinder such other Contractor or other person or persons employed for completing and finishing or using the materials and plant for the works. When the works shall be completed or as soon thereafter as convenient the Architect shall give notice in writing to the Contractor to remove his surplus materials and plant, and should the Contractor fail to do so within a period of fourteen days after receipt thereof, his Client shall sell the same by public auction and shall give credit to the Contractor for the amount realized. The Architect shall thereafter ascertain and certify in writing under his hand what (if anything) shall be due or payable to or by the Client for the value of the said plant and materials were so taken possession of by the Client and the expense or loss which the Client shall have been put to in procuring the works to be completed, and the amount, if any, owing to the Contractor and the amount which shall be due to the Contractor or to the Client, as the case may be, and the certificate of the Architect shall be final and conclusive between the parties.
B.41. Termination of Contract by Contractor.
If payment of the amount payable by the Client under certificate of the Architect with interest as provided for hereinafter shall be in arrears and unpaid for thirty days after notice in writing requiring payment of the amount with interest as aforesaid shall have been given by the Contractor, to the Client, or if the Client interferes with or obstruct the use of any such certificate, or the Client commits any "Act of insolvency" or if the Client (being an individual or firm) shall be adjudged an insolvent, or (being incorporated Client) shall have an order made against him or pass an effective resolution for winding up, either compulsorily or subject to the supervision of the court, or voluntarily, or if the official assignee or the liquidator in any such winding up shall be unable within fifteen days after notice to his requiring him to do, to show to the reasonable satisfaction of the Contractor that he is unable to carry out and fulfil the contract and to make contract, to give security of the same, or if the works be stopped for all payments due, and to become due thereafter, and if required by three months under the order of the Architect or the Client or by any injunction or other order of any court of law, then and in any of the said cases, the Contractor shall be at liberty to determine the contract by notice in writing to the Client, through the Architect and he shall be entitled to recover from the Client, payment for all works executed and for any loss he may sustain upon any plant or materials supplied or purchased or prepared for the purpose of the contract.
In arriving at the amount of such payment the net rates contained in the Contractor's original tender shall be followed, or where the same may not apply valuation shall be made.

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