Para 10.8.3 — CONSULT_MANUAL

10.8.4 Determination of Contract for Default/ Convenience of Procuring Entity or for Frustration of Contract 1. After placement of the contract, there may be an unforeseen situation compelling Procuring Entity to terminate the contract, in whole or in part for its (the Procuring Entity’s) convenience, by serving written ‘Notice for Determination of Contract’ on the contractor at any time during the currency of the contract. The notice shall indicate inter-alia, that the termination is for the convenience of the Procuring Entity or the frustration of the contract and also the extent to which the contractor’s performance under the contract is terminated, and the date with effect from which such termination shall become effective.

a) prejudice or affect the rights and remedies, which have accrued and/ or shall accrue to the Procuring Entity after that. b) affect the performance of the contract to the extent not terminated, unless otherwise instructed by the Procuring Entity, c) extinguish liability of the contractor, for the services already supplied, if any.

2. If the contract is terminated in whole or in part, additionally, recourse may be taken to any one or more of the following actions:

a) Temporarily withhold payments due to the contractor till recoveries due to invocation of other contractual remedies are complete. b) Call back any loaned property or advances of payment, if any, with the levy of interest rate (e.g., the interest rate of the General Provident Fund-GPF) prevailing on the date of release of advance payment, plus 2% to be compounded quarterly. c) Recover liquidated damages and invoke denial clause for delays. d) Prefer claims against insurances, if any. e) Encash and/ or Forfeit performance security or f) Invoke any other contractual securities, including Termination of Contract for Default g) Initiate proceedings in a court of law for the transgression of the law, tort, and loss, not addressable by the above means.

2. Such termination shall not prejudice or affect the rights and remedies accrued and/ or shall accrue after that to the Parties.

3. Unless otherwise instructed by the Procuring Entity, the contractor shall continue to perform the contract to the extent not terminated.

10.8.3 Termination of Contract for Default 1. In the event of unsatisfactory resolution of ‘Notice of Default’ within two weeks of its issue as per para above, the Procuring Entity, if so decided, shall by written ‘Notice of Termination for Default’ sent to the contractor, terminate the contract in whole or in part, without compensation to the contractor. Before cancelling the contract and taking further action, it may be desirable to obtain legal advice. Such termination shall not:

All warranty obligations, if any, shall continue to survive despite the termination. 5. Determining the contract by Procuring Entity for its convenience is not its legal right – and the contractor must be persuaded to acquiesce. Depending on the merits of the case, the contractor may have to be suitably compensated on mutually agreed terms for terminating the contract. Suitable provisions to this effect should be to be incorporated in the tender document as well as in the resultant contract.

6. The Services and incidental Goods/ Works that are complete and ready in terms of the contract for delivery and performance within thirty days after the contractor’s receipt of the notice of termination shall be accepted by the Procuring Entity as per the contract terms. For the remaining Services and incidental Goods/ Works, the Procuring Entity may decide:

a) To get any portion of the balance completed and delivered at the contract terms, conditions, and prices; and/ or b) To cancel the remaining portion of the Services and incidental Goods/ Works and compensate the contractor by paying an agreed amount for the cost incurred by the contractor, if any, towards the remaining portion of the Services and incidental Goods/ Works.