Termination for convenience by employer in construction contract

Termination for convenience clauses is now present in many construction contracts. This clause essentially allows an employer to terminate the contract for his own convenience without having to specify the default that the contractor has committed. Contrary to termination for default where the power...

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Main Author:	Lau, Siew Soon
Format:	Thesis
Language:	English
Published:	2017
Subjects:	TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/78668/1/LauSiewSoonMFAB2017.pdf
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id	my-utm-ep.78668
record_format	uketd_dc
spelling	my-utm-ep.786682018-08-29T07:35:46Z Termination for convenience by employer in construction contract 2017-06 Lau, Siew Soon TH Building construction Termination for convenience clauses is now present in many construction contracts. This clause essentially allows an employer to terminate the contract for his own convenience without having to specify the default that the contractor has committed. Contrary to termination for default where the power to terminate the contract rests on the contractual determination or common law termination, the invocation of the termination for convenience clause is biased towards the employer where the unilateral power to exercise the such clause rests on the employer. This may subject to clear abuse of discretion by the employer if the clause is improperly exercised and may lead to disastrous consequences if such termination results in wrongful termination. Limitations on the rights to terminate for convenience are necessary to ensure that the termination process is lawful and valid. This research study is conducted for the purpose to identify potential issues that prohibits the employer to terminate for convenience. Analysis of eleven (11) cases from Commonwealth countries are done to meet the research objective. In general, termination for convenience clause shall comply with the existing contractual terms for the entitlement of absolute right of termination exercisable by the employer. Further to that, the contract provisions shall specify the limit of the damages claimable by the contractor in any event of termination for employer’s convenience. The employer shall also act in good faith when exercising his discretion to comply with the validity of termination for convenience. Lastly, termination for convenience clause should not be read together with variation clause to omit the balance of the works. Hence, condition precedents are important to be specified to further enhance the duties and obligations of the parties involved in the agreement prior to termination for employer’s convenience for the fairness of contract. 2017-06 Thesis http://eprints.utm.my/id/eprint/78668/ http://eprints.utm.my/id/eprint/78668/1/LauSiewSoonMFAB2017.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:110492 masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH Building construction
spellingShingle	TH Building construction Lau, Siew Soon Termination for convenience by employer in construction contract
description	Termination for convenience clauses is now present in many construction contracts. This clause essentially allows an employer to terminate the contract for his own convenience without having to specify the default that the contractor has committed. Contrary to termination for default where the power to terminate the contract rests on the contractual determination or common law termination, the invocation of the termination for convenience clause is biased towards the employer where the unilateral power to exercise the such clause rests on the employer. This may subject to clear abuse of discretion by the employer if the clause is improperly exercised and may lead to disastrous consequences if such termination results in wrongful termination. Limitations on the rights to terminate for convenience are necessary to ensure that the termination process is lawful and valid. This research study is conducted for the purpose to identify potential issues that prohibits the employer to terminate for convenience. Analysis of eleven (11) cases from Commonwealth countries are done to meet the research objective. In general, termination for convenience clause shall comply with the existing contractual terms for the entitlement of absolute right of termination exercisable by the employer. Further to that, the contract provisions shall specify the limit of the damages claimable by the contractor in any event of termination for employer’s convenience. The employer shall also act in good faith when exercising his discretion to comply with the validity of termination for convenience. Lastly, termination for convenience clause should not be read together with variation clause to omit the balance of the works. Hence, condition precedents are important to be specified to further enhance the duties and obligations of the parties involved in the agreement prior to termination for employer’s convenience for the fairness of contract.
format	Thesis
qualification_level	Master's degree
author	Lau, Siew Soon
author_facet	Lau, Siew Soon
author_sort	Lau, Siew Soon
title	Termination for convenience by employer in construction contract
title_short	Termination for convenience by employer in construction contract
title_full	Termination for convenience by employer in construction contract
title_fullStr	Termination for convenience by employer in construction contract
title_full_unstemmed	Termination for convenience by employer in construction contract
title_sort	termination for convenience by employer in construction contract
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department	Faculty of Built Environment
publishDate	2017
url	http://eprints.utm.my/id/eprint/78668/1/LauSiewSoonMFAB2017.pdf
_version_	1747818042047332352

Termination for convenience by employer in construction contract

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