Practical checklist for terminating construction contracts: grounds (contractual/common law), insolvency restrictions, notice requirements, step-in rights, consequences and post-termination actions

Published by a LexisNexis Construction expert

Checklists

This Checklist outlines the key matters to weigh up both prior to and following a decision to bring a building contract to an end, or any agreement connected to a construction project. Comprehensive guidance and detail on ending contracts is available in the Termination and suspension in construction contracts subtopic.

Considerations when deciding whether to terminate

A party contemplating steps to terminate a construction contract should reflect on the following:

What grounds are relied upon for ending the contract?
Review the building contract closely. Does it include explicit provisions on termination, identifying particular events that allow the parties to terminate? Many UK building contracts contain express termination rights (see Practice Notes: JCT contracts—termination, NEC contracts—termination, FIDIC contracts 2017—termination by the Employer, FIDIC contracts 2017—termination by the Contractor, FIDIC contracts (pre-2017 editions)—termination by the Employer and FIDIC forms of contract (pre-2017 editions)—termination by the Contractor).
If there are contractual grounds for termination, what are they, and do they apply to the circumstances?

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Web page updated on 20/05/2026

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