This is part 12 in an ongoing series on notices under FIDIC Silver Book 2017. This post covers the provision for notices in Clause 16 (Suspension and Termination by Contractor).

Clause 16 (Suspension and Termination by Contractor)

Sub-Clause 16.1 (Suspension by Contractor)

If the Employer fails to:

  • provide evidence of financial arrangements,
  • comply with payment, or
  • comply with the binding agreement or decision of the DAAB

then, the Contractor may, not less than 21 days after giving a Notice to the Employer, suspend work or reduce the rate of work unless or until the Employer has remedied such default.

If the Employer subsequently remedies the default as described in the notice, before the Contractor gives a notice of termination of the Sub-Clause 16.2 (Termination by Contractor), then the Contractor shall resume normal working as soon as is reasonably practicable.

Sub-Clause 16.2 (Termination by Contractor)
The Contractor shall be entitled to give a Notice in line with Sub-Clause 16.2.1 (Notice) to the Employer of his intention to terminate if, the Employer does not respond within 42 days for the failures stated and also if he does not receive a Notice of the Commencement Date within 84 days after signing the contract agreement.

Unless the Employer remedies the matter described in this notice within 14 days, the Contractor may, by giving a second notice, immediately terminate the contract under Sub-Clause 16.2.2 (Termination). The date of termination shall then be the date the Employer receives the second notice.

So, as in Sub-Clause 15.2 (Termination for Contractor’s Default), the Contractor also has a similar right of termination by one of two methods. The first method of giving notice to the Employer of the Contractor’s intention to terminate which was explained earlier. The Contractor can also directly give the notice of termination if:

  • there is a prolonged suspension from the Employer,
  • an Employer becomes bankrupt or insolvent, or
  • the Employer is found to have engaged in corrupt or fraudulent or collusive or coercive practice in relation to the Works and/or contract.

The Contractor may terminate the contract immediately under Sub-Clause 16.2.2 (Termination) and the date of termination shall be the date the Employer receives this notice.

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 twelfth post in a multi-part series and was originally published as two LinkedIn videos, viewable here and here.