Terminating an NEC4 contract

The NEC (including NEC4) suites of contracts share their own style and approach to drafting and balance of risk. One area of difference between the NEC4’s approach, compared to other standard forms, is on any termination of contract. The NEC4 suite places the termination table at the centre of a contractual process for any termination.

The termination table is similar across the NEC4 suite. In the NEC4 ECC it is found at clause 90.2. The table sets out the terminating party, reasons for termination, any procedures that will apply and any amounts to be considered when assessing the amount due.

It is vital to read the clauses around the termination table, as well as the table itself. For example, critical information about serving notice (including who to serve notice on) and who implements procedures are typically found in the clauses around the table.

We recently addressed termination (considering recent cases, JCT and NEC termination) in a webinar, which you can view on-demand on our Youtube channel and we have now also published a practice note on NEC4 termination on Practical Law.