The Contract has a ‘Z’ clause titled Termination for Convenience which states “The Employer may terminate the contract at any time for a reason not stated in the Contract (Termination for Convenience) by giving notice in accordance with clause 90.1”.
Do you think this could be seen as an unfair clause that could be challenged in court by a Contractor or is it simply that it is a clause included in a contract which the Contractor has signed up to and is legally bound by no matter how it could be implemented by the Employer? A good example of why termination for convenience would be used in this case is that following request and submission of the Contractor’s revised programme and price going forward, further to scope change and to take the contract into its second phase, that submission is deemed to be significantly over stated with little or no hope in agreeing any reduction so a sensible target price and incentive mechanism can be re-set.
Appreciate it’s hard to decide without all the facts so I’ve given as much relevant information as I can but could provide more if you have other questions.