NEC3 ECC: The Employer has run out of money on an ECC Option A contract, Can he terminate without notice?

1 Like

I guess the short answer is “Yes”. The Employer can terminate for any reason at any point, and then you would follow the termination clauses within section 9 of the contract. This is likely to be for reason R21, which would then mean following procedure P1 and P4, and the amount payable to the Contractor will be A1 and A2.

Glenn. I think you are being optimistic that this is a R21.It isn’t an event stopping the Contractor - it is one stopping the Employer. I would want to claim this as an event not R1 to R21 and claim A4 payment, loss of profit as well. I may not get it because the Employer has run out of money …