Profiling of termination grounds in construction contract

Abstract

Terminating a contract can be complex and it is very important that the correct procedures are followed. It is essential to remember that the grounds for termination under the contract would not all amount to fundamental breaches at common law. A specific contractual provision for termination is essential because to rely on common law, repudiation can be very uncertain. Contractual termination must not be thought to end all problems in that respect because deciding whether the precise grounds have been satisfied can bring its own problems of interpretation of the clauses and of the facts itself. Hence, this research aims to identify grounds to termination contract in construction industry. This research is carried out mainly through documentary analysis of law journal. This data needed for this research is obtained via LexisNexis Malaysia and CIDB Law Report. From the cases that appear under the termination keyword, it appears that 14 cases are related with the scope of the research. The judgment of each of the cases is analysed in order to find out either the termination grounds of construction contract. The grounds are nonpayments of sum due, hindrance of the contractor, abandonment or suspension of the work, defective work, delay and not comply with material specification. This research also highlighted the parties involved in the cases and level of court interfere in the case. Hence, the findings of this research will provide a profile on the grounds of termination for the construction players in the future. This research perhaps would contribute towards enhancement of knowledge of the contracting parties by shedding some information and knowledge regarding their rights.