We have received a notification of termination of our Option A contract by the Contractor reason being: for convenience a reason other than for R1-R21. We have not received a termination certificate as this is to follow apparently, and the Contractor has also asked for a meeting in the New year when we return to work to discuss the details of the termination notice. Should we return to work and continue where we left off until the certificate is received? And would this be at our risk, please advise?
You should wait until the termination certificate is issued before you start demobilising otherwise:
- if they change their mind, you would bear the full cost of re-mobilising;
- if you stop work, there is a danger that they say it is due to your fault which would undermine your commercial position.
Obviously, it might well be wise to hold off placing more orders etc.
We have now received the termination certificate and it still states for the same reasons ie for Convenience and a reason other than R1-R21. However he has stated we are only due A1 & A2, it appears they have managed to sneak in an exclusion in our contract excluding A4 in the small print!!! Under NEC law can they do/have done this originally seems unfair, surely the main table is the NEC rules that cannot be changed? Please advise. Thanks in advance