Termination by employer of a JBCC® agreement – the contractor remains in default after notice to remedy a default by not:-

  1. Proceeding with the works;
  2. Executing a contract instruction;
  3. Providing a Guarantee for Construction, if specified [CD];
  4. Effecting insurances if specified [CD];

The employer must follow procedures defined (time bars) in the clauses, and may:

  1. Use materials on site;
  2. Use construction equipment (?)
  3. Employ others
  4. Apply the penalty, if specified in the tender documents
  5. Recover damages

Where the JBCC® agreement is terminated:

The latent defects liability period for the completed works ends (5) years from the date of termination;

The employer has the right of recovery against the contractor, where applicable, [CD] from the:

  • Guarantee for Construction (variable) – until the final payment has been made; or
  • Guarantee for Construction (fixed) – until the date of practical completion or from the payment reduction until the final payment is made
  • Guarantee for Advance Payment – until the outstanding balance has been repaid to the employer;

Thereafter the original security form(s) shall be returned to the contractor within ten (10) working days

See: 6.1P-29.1; 5.0P-38.1; 4.1P-38.1; 5.1M-21.8; 4.0M-16.1; 3.1M-16.1