“The owner can, at any time and for any reason, terminate the contractor`s services and work at his convenience. Upon receipt of this notification, unless otherwise stated, the contractor immediately halts work and contracts related to equipment, facilities and supplies related to the implementation of this agreement. There are considerable differences between the redundancy provisions. If the contractor is terminated for unjustified reasons, the owner is no longer legally required to make payments to the contractor. In addition, the owner is authorized to use the contractor`s equipment – which was on the project site at the time of the project`s completion – to complete the project. The contractor may be held liable to the owner for the costs that may be borne by the owner when the project is carried out, exceeding the price of the original or adjusted contract. In the United Arab Emirates, most contracts contain the termination clause for convenience, usually unrestricted, although a tax may apply for early termination. The party has the right to terminate the contract at some point. He may be with or without notice or without review of the evidence that a particular breach of the terms of the contract has occurred. Given the current industry scenario and market conditions, there are commercial reasons why the contract is terminated and why the party receiving the notification feels concerned. The termination of a contract can be difficult.
If your contract does not contain explicit terms and conditions that provide for something else, the only option to terminate it is contractual. A termination clause “for convenience” allowing a party to terminate the contract without cause can be a useful mechanism to terminate a contract and avoid costly litigation. This type of clause has become more common in the construction industry in recent years. However, it is essential that the termination clause, for convenience reasons, contain a clear and clear wording that specifies both the application of the clause and the harm to be paid to the other party when it is invoked. Before contracting out, a subcontractor should always check the termination clauses in this subcontract. If the subcontract contains a clause stating that if a termination is incorrect, the termination is automatically converted to termination, the subcontractor should object to the clause. Many work contracts also contain a clause allowing the owner or principal contractor to complete the remaining work of the contractor on the project at the owner`s discretion. Such a termination is not due to a fault of the holder. The termination of convenience clauses was first included in the federal government`s purchase contracts. However, such clauses are now common in private contracts.