PRACTICE NOTES
Termination
The NEC contracts set out detailed termination provisions, identifying when parties may terminate and the resulting effects and procedures, though they are less far-reaching than those included in JCT contracts.
Under NEC, it is the Contractor’s obligation to Provide the Works that is ended, not the contract, and this deliberate distinction ensures, as intended by the drafting, that post-termination provisions continue to operate.
Even once that obligation ends, in some circumstances specified by the contract the Contractor must reimburse the Client for additional costs of completing the works.
This Practice Note addresses clauses in the NEC3 and NEC4 Engineering and Construction Contract, with comparable terms across other NEC contracts, and should be read with Practice Note: Termination of a construction contract to provide context.
For termination guidance under the NEC Professional Service Contract and the NEC Supply Contract, see the respective Practice Notes: NEC
Construction