The instruction from the employer seeking a quote doesn’t say Covid related but I believe that it is. Even if it wasn’t, the instruction seems to be an event that could not have been foreseen as per termination under R21?
I think we must terminate the s/c as the instruction from the employer is clear that the subcontract will not be needed. They haven’t said why though and I suppose we should clarify this as it will impact on the s/c’s/our entitlement?
Whether or not the instruction is due to Covid or not does not change the fact that the works you had engaged your Subcontractor to do are not now to go ahead so you will have no choice but to terminate their contract with you. You need to do that in accordance with your contract with them - and quickly as any costs involved in terminating them needs to be included within your CE quotation with your Client. I would also make a point of letting them know this is the case - as the costs they will incur for termination could even lead them to change their mind in deleting the works in the first place.
Thanks. Much appreciated