GROUP MEMBERS : AIMI SARA BT ISMAIL FATIN MAHIRAH BT AHMAD MARZUKI INTAN FATIN SYAZWANI BT AZINAL ABIDIN

Termination

of contract is to terminate an existing agreement/contract between two parties. A termination notice must be in writing.

1. 2.

Contractors Obligation Problem occur during the contract period

 Fails

to commence works at the site within 2 weeks after the date for possession. Suspends or abandons the carrying out the works without reasons for a continuous period Fails to proceed regularly and diligently with the performance of his obligations. Fails to execute the works in accordance with the contracts

 Purposely

neglects to carry out his obligations under the contract. Refuses or purposely neglect to comply with a written notice from the S.O in relation to any defective work or equipment Fails to comply with the provisions of clause 47 Fails to comply with any terms and conditions of this contract.

 The

contractor becomes bankrupt The contractor becomes insolvent or compounds with or enters into an arrangements or compositions with its creditors Order for winding up of contractor

provisional liquidator, receiver or manager of its business or undertaking duly appointed , or possession taken by or on behalf of creditors or debenture holders

CONTRACTOR SHALL : Discontinue all operations of works Carry out any protection works to secure the Site, equipment, goods, and materials from any losses or damages. Remove all personnel and workmen from Site. Pay to the Government for any losses and damages.

CONTRACTOR SHALL : terminate all third party contracts or supply materials or goods to the Government without any costs or expenses. or allow the third party to enter contract with the Government.

CONTRACTOR SHALL : Vacate the site within the time instructed by S.O., remove all temporary buildings, plant, tools, equipment, goods and unfixed materials which have not been paid by the Government. Hand over all plans, designs, specification and other relevant documents to Government. Not be released from any of its obligations under the Contract.

GOVERNMENT SHALL : Demand Performance Bond or Performance Guarantee Sum. Enter and repossess the Site. Carry out and complete the works on its own or employ other party. Claim from the Contractor for any losses, costs, expenses and damages.

 Notwithstanding,

any provision of this contract, the government may terminate this contract by giving not less than 30 days written notice to that effect to the contractor if the government considers that such termination is necessary for national interest.

Payment obligations incurred by the Government and the Contractor are determined. Apply Clause 51.1(c)(i) and Clause 51.1(c)(ii)(B) & (C)

 Without

prejudice to any other rights of the government, of the company, its personnel or employees is convicted by a court of law for corruption or unlawful or illegal activities in relation to this contract or any other agreement that the contractor may have with the government, the government shall be entitled to terminate this contract at any time, by giving immediate written notice.

Government shall be entitled to claim all losses, costs, damages and expenses incurred by the Government. Apply Clause 51.1(c)(i) &(ii) Contractor shall not be entitled to claim any form of losses.

Surat amaran kemungkiran kontraktor

Kontraktor meneruskan kemungkiran kontrak Ya Notis penamatan pengambilan kerja kontraktor Kontraktor meneruskan kemungkiran kontrak Ya Penamatan pengambilan kerja kontraktor Tidak

Tidak

Tiada tindakan

Tiada tindakan Kontraktor mengulangi kemungkiran

14 hari

CLAUSE 56 CLAUSE 54

PAYMENTS UPON SUSPENSION & TERMINATION ON NATIONAL INTEREST

CERTIFICATE OF TERMINATION COSTS

CLAUSE 55

EVENTS & CONSEQUENCE S OF DEFAULT BY THE GOVERNMENT

CLAUSE 54 Payments upon suspension & termination on national interest

CLAUSE 54.1

CLAUSE 54.1 (a)

Value of work that have be done before the termination.

CLAUSE 54.1 (b)

Amounts payable ; 1. Any preliminaries items so far as the work or service has been carried out/performed 2. A proper proportion of any items which have been partially carried out.

CLAUSE 54.1 (c)

The cost of materials that needed in the construction which have been delivered to the contractor or contractor is legally liable to accept delivery. This is due to ; Any payment made for the materials belong to the property of the Government

CLAUSE 54.1 (d)

A sum being the amount of any expenditure reasonably incurred by the contractor In so far as such expenditure has not been recovered by any other payment.

CLAUSE 54.1 (e)

The reasonable cost of any protection works and removal of equipment & site facilities pursuant to termination as provided under this contract.

CLAUSE 54.2
Base on this clause, for avoidance of doubt, the parties hereby agree that contractor not entitled to any loss of profit, damages, claims or whatsoever other than stated in clause 54.1(a) (e)

CLAUSE 54.3
Base on this clause, a final account need to be prepared and issued by S.O upon termination of this contract under clause 50 & 52

CLAUSE 55 Events and consequences of default by the government

CLAUSE 55 (a) Events of defaults Base on this clause, if government without reasonable cause fails to perform of fulfill any of its obligations which affect the works, The contractor may issue a notice specifying the default by government & requiring the government to remedy the same within the period specified (taking into account the nature of the remedy to be carried by government / such other period as may be agreed by both parties from the date of receipt of such notice)

CLAUSE 55 (b) Termination Base on this clause, if government fails to remedy the default period specified in such noticed issued under clause 55(a), The contractor has the right to terminate the contract by giving a written notice to that effect. CLAUSE 55 (c) Consequenced of Termination (i) Base on this clause, if the contract is terminated under clause 55 (b), the government should pay to the contractor ; 55(c) (i) - (a) to (d) = same as in clause 54.1 (a) to (d) (ii) For the avoidance of doubt, the parties hereby agree that contractor shall not entitled to any other form of losses including loss of profit , damages, claims or whatsoever upon termination of this contract.

CLAUSE 56 Certificate of termination Costs

CLAUSE 56.1

1. Base on this clause, S.O need to make a reasonably accurate assesment of the ultimate cost to the government & the amount of direct loss and/or damage caused to the government. 2. S.O need to issue a certificate call Certificate of Termination Costs stating the Completion Cost and Final Contract Sum

CLAUSE 56.2

Base on this clause, the Completion Cost comprises the following sums,costs or expenditure ;
(a) The sum previously paid to the contractor by the government (b) the sums paid or payable to other contractor engaged by the government to complete the work (c) any sums paid to sub- contractors or suppliers under clause 61 (d) any cost expenditue incurred or to be incurred including On-Cost charges incurred by the government in completing the works (e) the amount of direct loss and/or damage caused to the government due to the termination

CLAUSE 56.3 Base on this clause, the Final Contract Sum comprises the following amounts or sums ; (a) The amount which would have been payable under contract on completion in accordance with the contract, allowing any variations pr other matters which would have resulted in an adjustment of the original contract sum (b) any other sum which the government might be entitled under the terms of the contract to deduct from the original contract sum

CLAUSE 56.4 Base on this clause, The Certificate of Termination Cost shall state the difference between Final Contract Sum & Completion Cost. If the Final Contract Sum is less than Completion Cost, the difference shall be a debt payable by contractor to the government & vice versa

CLAUSE 56.5 Base on this clause, the Certificate of Termination Cost shall be binding and conclusive on the contractor as to the amount of such loss or damage specified therein.

CLAUSE 56.6 Base on this clause, in the event of completion of works being undertaken departmentally , allowance shall be made, when ascertaining the amount to be certified as costs & expense incurred by government (for cost of supervision,interest, depreciation on plant & all other overhead charges and profit as would be incurred by other contractors/persons.

LIBENHAM FIDELITIES & INVESTMENT CO. LTD. V SOUTH PEMBROKESHIRE DISTRICT COUNCIL & WIGLEY FOX PARTNERSHIP
CONTRACTOR LIBENHAM FIDELITIES & INVESTMENT CO. LTD.

CLIENT

SOUTH PEMBROKESHIRE DISTRICT COUNCIL & WIGLEY FOX PARTNERSHIP

 S.O

had mistakenly advice the client to charge LAD towards the Contractor due to the defects occur during construction period. Contractor argued the Clients action and abandoned the works on site. Client decided to terminate the contract. Court held that Contractor had no right to abandon the Site and termination of contract by Client is legal. Clause 51.1(a)(ii)