The termination of a relationship in a construction contract can often come as a surprise causing both confusion and resentment. Negotiations can escalate into protracted and costly disputes. Employers believe their action is as per provisions of contract and Contractors consider it as abuse of power.

This paper considers termination of contract by the Employer under the 1999 FIDIC Red and Yellow Standard Forms of Contract, (the termination provisions of both forms of contract are identical) which are used on international construction and engineering projects.

Dr C.S.Suryawanshi, Former Chief Engineer & Joint Secretary (P.W.D) Senior Consultant Mumbai.

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