DAC Beachcroft
19 Experts
4 Contributions by DAC Beachcroft
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
PRACTICE NOTES
If a party to a construction contract enters insolvency, the consequences are governed by the Insolvency Act 1986 (IA 1986). Nonetheless, the contract itself may expressly set out what should occur if a party, most commonly the contractor, becomes insolvent. With the introduction of the Corporate Insolvency and Governance Act 2020 (CIGA 2020), suppliers are barred from using contractual termination rights that arise because of insolvency, by virtue of section 233B of the IA 1986. CIGA 2020 is a notable reform of UK insolvency law and may influence supply chains across the construction sector. These statutory provisions operate alongside any express terms within the agreement that address insolvency events for either party, in particular where the contractor is concerned.
The IA 1986
The IA 1986 addresses both the bankruptcy of individuals and the winding up of companies. Where an individual contractor is made
Construction
PRACTICE NOTES
Termination of a construction contract
A construction contract can be brought to an end—discharged, terminated or determined—in several ways. Chief routes include:
performance
mutual agreement or release
misrepresentation or fraud (see Practice Note: Misrepresentation—rescission as a remedy)
frustration (see Practice Note: Discharge by frustration)
at common law for a repudiatory breach of contract (repudiation)
exercising a contractual right to terminate, for example:
for breach of contract
at will
on insolvency
This Practice Note considers ending a construction contract at common law for repudiatory breach, and termination under an express contractual power either for breach or on an at-will basis. For guidance on ending for insolvency, see Practice Note: Termination on insolvency in
Construction
PRACTICE NOTES
JCT contracts include comprehensive rules on termination, explaining the grounds on which parties may end matters and the effects that follow. Under these forms, it is the Contractor’s employment that is brought to an end, rather than the contract itself. This distinction is intended to ensure the contract’s post-termination provisions remain operative after termination. This Practice Note addresses the termination clauses in the JCT Standard Building Contract (SBC) With Quantities 2011, 2016 and 2024 editions, found in section 8 of those agreements. Equivalent mechanisms also appear in other JCT contracts. It should be read in conjunction with Practice Note: Termination of a construction contract. Termination should always be approached with great care. If a termination is wrongful, or if the prescribed procedures are not followed precisely, the attempt to terminate may amount to a repudiatory breach of contract by the party seeking to do so.
Construction
23 Contributions by DAC Beachcroft Experts
PRECEDENTS
This Agreement is entered into on [ insert date ] between the Parties hereto.
Parties
[ Name of employer ], a company registered in England and Wales under number [ insert company number ], with its registered office at [ insert address ] (Employer)
[ Name of union ], of [ insert address ] (Union)
Together, the Parties to this Agreement.
1 Commencement date
1.1 This Agreement takes effect from [ insert commencement date ].
2 Scope and purpose of the Agreement
2.1 This Agreement applies solely to [ insert description of the workers or employees in the bargaining unit ] (Employees).
2.2 This Agreement affords the Union recognition in respect of collective bargaining, restricted solely to pay, hours of work and holiday entitlement, and only in relation to the Employees.
3 Objectives
3.1 Industrial relations are a shared duty of the Parties and depend on the genuine
Employment
CHECKLISTS
This practical guidance relates to the Procurement Act 2023 regime
From 24 February 2025, the core provisions of the Procurement Act 2023 (PA 2023) take effect. Competitions launched on or after that date must, where relevant, proceed under PA 2023, whereas procurements initiated under earlier rules must continue to be run and administered in accordance with those regimes.
The previous legislation comprises:
Public Contracts Regulations 2015 (PCR 2015), SI 2015/102
Utilities Contracts Regulations 2016 (UCR 2016), SI 2016/274
Concession Contracts Regulations 2016 (CCR 2016), SI 2016/273
Defence and Security Public Contracts Regulations 2011 (DSPCR 2011), SI 2011/1848
This guidance sets out a comparison of the principal features of public procurement under PA 2023 and PCR 2015, SI 2015/102. For background on PA 2023, see Practice Note: Introduction to the Procurement Act 2023—PA 2023 and Does the Procurement Act 2023
Public Law
FLOWCHARTS
Inheritance (Provision for Family and Dependants) Act 1975: Applicant Classes
This flowchart sets out the groups of potential claimants who can seek reasonable provision from a deceased person’s estate pursuant to the Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975). For each applicant type, it lists the requirements to be met and identifies matters to weigh up before commencing any claim, while signposting these points and referring the practitioner to supplementary guidance, where necessary for further guidance...
Employment
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