Termination and suspension

A construction contract may be discharged, terminated or determined in a number ways. These principally include:

1. •

   by performance

2. •

   by agreement/release

3. •

   as a result of a misrepresentation/fraud (see Practice Note: Misrepresentation—rescission as a remedy)

4. •

   frustration (see Practice Note: Discharge by frustration)

5. •

   at common law for 'repudiatory' breach of contract ('repudiation') (see Practice Note: Repudiation of contract), or

6. •

   pursuant to a contractual power to terminate the contract, for example:

   1. ◦

      for breach of contract

   2. ◦

      at will

   3. ◦

      on insolvency (see below)

Practice Note: Termination of a construction contract considers termination of a construction contract at common law for repudiatory breach, and termination by operation of a contractual provision either for breach or at will. See also Practice Note: Material breach in construction contracts, which looks specifically at contractual provisions allowing a party to terminate (or suspend works) for ‘material breach’.

A useful summary of the issues to consider is also available in Checklist: Termination of a construction contract—checklist.

In relation to consultant appointments, see Practice Note: Termination of a consultant's appointment.