Clause 15 deals with Termination by the Employer. In summary:

• Sub-Clause 15.1 deals with a Notice to Correct. This permits the Engineer to issue a Notice to the Contractor about a failure to carry out any obligation under the Contract. The Engineer can require that the Contractor make good the failure and remedy it within a specified reasonable time.
• Sub-Clause 15.2 deals with Termination by the Employer. There are six grounds specified. In most cases the Employer may give 14 days’ notice if it intends to terminate the contract; however, where the Contractor has become bankrupt or insolvent etc. under Sub-Clause 15.2(e) or gives a bribe, gift, inducement or reward etc. under Sub-Clause 15.2(f) then the Employer may by notice terminate immediately. The Contractor must then leave Site and deliver any required Goods, all Contractor’s Documents and other design documents made by or for him to the Engineer.
• Sub-Clause 15.3 deals with valuation at the date of Termination. When termination has taken effect the Engineer is required to determine the value of the Works, Goods and Contractor’s Documents, and any other sums due to the Contractor for work executed in accordance with the Contract.
• Sub-Clause 15.4 deals with Payment after Termination. Once termination under Sub-Clause 15.2 [Termination by Employer] has taken effect then the Employer may proceed in accordance with Sub-Clause 2.5; withhold further payments to the Contractor; and recover from the contractor any losses and damages incurred by the Employer and the extra costs of completing the Works.
• Sub-Clause 15.5 deals with the Employer’s Entitlement to Terminate. This is a termination at will provision that allows the Employer to terminate the Contract by giving 28 days’ notice, so long as the Employer does not intend to have the Works executed by himself or another contractor. In the event that termination occurs under this Sub-Clause then the Contractor is paid under Sub-Clause 19.6 [Optional termination, Payment and Release].

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