Andrew James

We would need to check the contract for you and see if there are specific grounds for termination (there normally are). Typically, there are strict requirements to give warning notices and to deliver any relevant notices in a specific way e.g. recorded delivery or by hand. It is crucial to follow the contract procedures carefully otherwise you could be held to be in serious breach of contract yourself and at risk of the “guilty” party terminating your contract and claiming loss of profit and the extra over costs of completing the works.

This can be risky and could put you in serious breach of contract unless you have a contractual right to do so. You will need to check if the money in question is indisputably due (for example because of a lack of a payment notice or pay less notice from the paying party) and what contractual rights you have to terminate the contract. If you want to suspend work for non-payment, then a specific notice needs to be given in advance, which needs to be carefully drafted.

Whilst it depends upon the form of contract concerned, most of them have their own “agenda” and the risk allocation may not be appropriate. Banks and other funders often insist on amendments being made to address these issues. We can provide a quick contract review at a sensible cost highlighting the main risks for you or can prepare a schedule of amendments making relevant and appropriate amendments to suit the project.