This is part 11 in an ongoing series on notices under FIDIC Silver Book 2017. This post covers the provision for notices in Clause 15 (Termination by Employer).

Clause 15 (Termination by Employer)

Sub-Clause 15.1 (Notice to Correct). If the Contractor fails to carry out any obligation under the contract, the Employer may give a notice describing that failure. The Contractor shall then remedy it within a specified time. The time specified in the notice to correct shall not imply any Extension of Time for completion. The Contractor shall immediately respond by giving a notice to the Employer describing the measures the Contractor will take to remedy the failure and stating the commencement date in order to comply with the time specified in the notice to correct.

Sub-Clause 15.2 (Termination for Contractor’s Default)
Sub-Clause 15.2.1 (Notices). Under this sub-clause, there are two means of Employer’s termination. One is the Employer giving Notice of his intention to terminate the contract. Alternatively, the Employer can directly give Notice of termination.

The Employer shall be entitled to give a notice to the Contractor of the Employer’s intention to terminate the contract if the Contractor:

  • fails to comply with:
    • a Notice to Correct,
    • a binding agreement, or
    • a decision of the DAAB,
  • abandons the Works, or
  • without reasonable excuse, fails to:
    • proceed with the Works,
    • comply with a Notice of Rejection,
    • comply with Sub-Clause 4.2 (Performance Security).

Unless the Contractor remedies the matter described in this notice within 14 days of receiving the notice, the Employer may, by giving a second notice to the Contractor, immediately terminate the contract in line with Sub-Clause 15.2.2 (Termination). The date of termination shall be the date of the Contractor receiving the second notice.

Similarly, the Employer shall be entitled to give a Notice of termination if the Contractor:

  • subcontracts the whole, or parts, of the Works in breach of Sub-Clause 4.4 (Subcontractors),
  • becomes bankrupt, or
  • is found to have engaged in corrupt, fraudulent, collusive practice at any time in relation to the works or contract.

In this case, the Employer may immediately terminate the contract and the date of termination shall be the date the Contractor receives this notice.

Sub-Clause 15.5 (Termination for Employer’s Convenience). If the Employer wants to terminate the contract at any time for the Employer’s convenience, he shall give a notice of such termination to the Contractor. The termination under this shall take effect 28 days after the later of the dates on which,

  • the Contractor receives this notice, or
  • the Employer returns the performance security.

Unless and until the Contractor has received payment of the amount due under Sub-Clause 15.6 (Valuation after Termination for Employer’s Convenience), the Employer shall not execute the works or arrange other entities to execute the work.

This series is now complete and is available as a PDF by emailing the subject line Silver Book Notices to Each post can be read on the blog at these links:
Part 1: An Introduction to Notices under FIDIC Silver Book 2017 Edition
Part 2: The Objective of Notices and What to Avoid
Part 3: Notices under Clauses 1-3
Part 4: Notices under Clause 4
Part 5: Notices under Clauses 5-6
Part 6: Notices under Clauses 7-8
Part 7: Notices under Clauses 9-10
Part 8: Notices under Clause 11
Part 9: Notices under Clause 12
Part 10: Notices under Clauses 13-14
Part 11: Notices under Clause 15
Part 12: Notices under Clause 16
Part 13: Notices under Clauses 17-18
Part 14: Notices under Clause 20
Part 15: Notices under Clause 21

This guest post was written by Mansoor Ali, FICCP and Jishma Joy. It is the eleventh post in a multi-part series and was originally published as two LinkedIn videos, viewable here and here.