Question 5

A Client is using an NEC4 contract for the construction of a new asset.

ECC Option A was used with secondary Options X1, X2 and X11
incorporated. The Contractor started works on the Site some 3 weeks ago
and has set up the Site facilities, commenced Site clearance, started
erecting some temporary fencing and arranged a number of subcontracts.
At the beginning of the fourth week, as part of budget cuts,
the Client wishes to terminate the Contractor’s obligation to Provide the
Works.

a.

Can the Client terminate the Contractor’s obligation to Provide the

Works just for budget cuts?

[2 marks]

b.

What does the Client and others need to do to put the termination
provisions into effect?

[3 marks]

The Project Manager issues a termination certificate later that day.

c.

What is the procedure for this termination and what is the role
of Client, Contractor and Project Manager in this?

[10 marks]
d.

Who determines the payment on termination and how is this done?

[10 marks]