Mutual termination agreement

Abstract

Construction industry is a huge and big industry. The industry involved so many works; so many trade, workers, material, contract document and so many things. The contract document usually is from the (Request for Proposal) that submitted by the tenderer that then be evaluated by the tender committee. If the entire requirement is fulfilled, the Request for Proposal is usually converted to the Agreement of Contract or Contract Document or called Condition of Contract. The Condition of Contract may be altered by the client to suit the price tendered by contractor. There will be some terms added by the client to make the Condition of Contract clearer and understandable. One of the terms is mutual termination agreement. Most of time, the mutual termination clause is like a silent in a Condition of Contract. Nobody bother about it. There are no mutual termination clause in PWD 203A (2010), PAM (2006), CIDB (2000) etc. Surat Pekeliling Perbendaharaan (SPP) Bil. 3 Tahun 2008 Pelaksanaan Syarat Perubahan Harga Di Dalam Kontrak Kerja was issue that suits the situation for increment in price for that year. They introduced Clause 32 Mutual Termination. The existing of Mutual Termination Agreement by Amran (2009) is to explain the Clause 32. There are 14 clauses all of them. The problem is, the 14 clauses are not covered all field in construction industry. That is why, in this study, the author will include few more terms to complete the existing Mutual Termination Agreement. Thus, the objective of this study is to add the terms for existing mutual termination agreement. Lastly, this terms; mutual termination agreement will be delivered and understood by all, especially by the contractor who are mostly involved in construction industry.