NEC ECC: Can someone describe the process the Employer will do in termination P1 & P2

If an Employer terminates early in the contract because he no longer has the funding secured, can someone describe the “process” the Employer will do in P1 and P2 and/or what part the Project Manager will be playing on the Employers behalf?

The Employer would presumably be terminating for ‘any reason’ under clause 90.2, as there is not a specified reason under clause 91 for this, unless the contract has been amended. Note that under NEC4 a Party may only terminate for a stated reason.

The Procedures are detailed at clause 92. Procedure P2 would likely apply first where the Employer instructs the Contractor to leave Site and remove any Equipment etc. If early in the contract this may only apply to any Site set-up, although if the Contractor has a design responsibility they may not even be on Site.

The Employer may then complete the works under procedure P1, although without the necessary funding this would almost certainly not actually occur.

The PM would issue the termination certificate and certify a final payment to the Contractor based on the applicable amount due stated in the termination table.