If an Employer terminates for convenience are they entitled to retain the direct fee percentage on the total contract value less the value of works done to date at termination, or should this amount be released immediately at the point of termination? Also, is payment on this due immediately or can it still be paid in line with the contract payment terms of 28 days from date of assessment?
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The procedure(s) to follow, and amount due, on termination are set out in the Termination Table within section 9.
By termination for convenience, are you referring to a reason outside of R1-R21. If so the amount due is assessed in accordance with A1, A2 and A4. In accordance with A4, Options A, B, C and D would include the direct fee % applied to any excess of the total of the Prices at the Contract Date over the Price for Work Done to Date.
Regarding payment, the Project Manager is required to certify a final payment within 13 weeks of the termination certificate and payment should be made within 3 weeks of the certificate.
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