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Sub-clause 15.5 allows the Employer to terminate the Contract at any time for convenience without cause, effective 28 days after notice is received by the Contractor. The Employer cannot terminate to execute the Works themselves or hire another contractor. Following termination, the Contractor must follow procedures outlined in Sub-clause 16.3 and will be compensated as per Sub-clause 19.6.

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0% found this document useful (0 votes)
1 views1 page

Consumer

Sub-clause 15.5 allows the Employer to terminate the Contract at any time for convenience without cause, effective 28 days after notice is received by the Contractor. The Employer cannot terminate to execute the Works themselves or hire another contractor. Following termination, the Contractor must follow procedures outlined in Sub-clause 16.3 and will be compensated as per Sub-clause 19.6.

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Employer’s termination for convenience (without cause)

Sub-clause 15.5 gives the Employer the right to terminate the Contract at any
time for
convenience, that is, without any default on the part of the Contractor or
other justification,
as follows:
“15.5 Employer’s Entitlement to Termination
The Employer shall be entitled to terminate the Contract, at any time for the
Employer’s
convenience, by giving notice of such termination to the Contractor. The
termination shall
take effect 28 days after the later of the dates on which the Contractor
receives this notice
or the Employer returns the Performance Security. The Employer shall not
terminate the
Contract under this Sub-clause in order to execute the Works himself or to
arrange for the
Works to be executed by another contractor.
After this termination, the Contractor shall proceed in accordance with Sub-
clause 16.3
[Cessation of Work and Removal of Contractor’s Equipment] and shall be paid
in accordance
with Sub-clause 19.6 [Optional Termination, Payment and Release].”

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