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Construction Contract Termination Agreement for Ireland

Construction Contract Termination Agreement Template for Ireland

A Construction Contract Termination Agreement under Irish law is a formal document that sets out the terms and conditions for ending a construction contract between parties. It addresses crucial elements including the termination date, financial settlements, handover of works, site security, management of materials and equipment, and mutual releases from future claims. The agreement ensures compliance with Irish construction law, particularly the Construction Contracts Act 2013, and includes provisions for handling outstanding payments, defects liability, and dispute resolution mechanisms. It provides a structured framework for winding down construction activities while protecting the interests of all parties involved.

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What is a Construction Contract Termination Agreement?

The Construction Contract Termination Agreement is a critical document used when parties need to formally end their construction contract relationship in Ireland. It becomes necessary in various scenarios, including mutual agreement to terminate, breach of contract, or project abandonment. The agreement must comply with Irish construction law, particularly the Construction Contracts Act 2013 and related regulations. It covers essential aspects such as final account settlements, work handover procedures, site security arrangements, and management of materials and equipment. The document typically includes detailed provisions for outstanding payments, defects liability, documentation requirements, and dispute resolution mechanisms. It's designed to provide a clear framework for termination while minimizing the risk of future disputes and ensuring all parties understand their rights and obligations during and after the termination process.

What sections should be included in a Construction Contract Termination Agreement?

1. Parties: Identification of all parties to the termination agreement, including the employer, contractor, and any relevant third parties

2. Background: Recitals detailing the original construction contract, key events leading to termination, and purpose of this agreement

3. Definitions: Definitions of key terms used in the agreement, including references to original contract definitions where applicable

4. Termination Date and Effect: Specific date of termination and its immediate effects on the contract and parties' obligations

5. Outstanding Works: Status of works at termination, including completed works, work in progress, and unfulfilled obligations

6. Site Handover: Requirements and procedures for securing and handing over the construction site

7. Materials and Equipment: Handling of construction materials, equipment, and temporary works on site

8. Financial Settlement: Terms for final payment, including outstanding amounts, retention release, and payment timelines

9. Documentation: Requirements for handover of relevant documentation, including as-built drawings, warranties, and certificates

10. Intellectual Property: Rights and licenses regarding design documents and other intellectual property

11. Mutual Release: Terms of mutual release from future claims, subject to specified exceptions

12. Surviving Obligations: Identification of contract provisions that survive termination

13. Governing Law and Jurisdiction: Confirmation of Irish law as governing law and jurisdiction for disputes

What sections are optional to include in a Construction Contract Termination Agreement?

1. Ongoing Disputes: Required when there are existing disputes that need specific resolution procedures

2. Novation Arrangements: Needed when contracts with subcontractors or suppliers are being transferred

3. Insurance and Bonds: Specific provisions for handling insurance policies and performance bonds when these exist

4. Defects Liability: Required when addressing ongoing liability for defects in completed works

5. Third Party Rights: Needed when there are third party beneficiaries under the original contract

6. Confidentiality: Required for projects with sensitive information or when parties want specific confidentiality provisions

7. Employee Matters: Needed when termination affects employment arrangements or TUPE regulations apply

What schedules should be included in a Construction Contract Termination Agreement?

1. Schedule 1: Original Contract Documents: List of all relevant contract documents being terminated

2. Schedule 2: Works Status Report: Detailed report on the status of works at termination

3. Schedule 3: Outstanding Payments: Breakdown of all outstanding payments, including final account calculations

4. Schedule 4: Site Inventory: Inventory of materials, equipment, and temporary works on site

5. Schedule 5: Handover Procedure: Detailed procedure for site handover and security arrangements

6. Schedule 6: Required Documentation: List of all documentation to be handed over

7. Appendix A: Site Plan: Current site plan marking areas of completed and incomplete works

8. Appendix B: Photographic Record: Photographic evidence of site condition at termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



















































Clauses









































Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial

Energy

Public Sector Construction

Residential Development

Healthcare Construction

Education Construction

Relevant Teams

Legal

Construction

Commercial

Operations

Project Management

Contract Administration

Risk Management

Procurement

Technical

Finance

Relevant Roles

Construction Director

Project Manager

Contract Manager

Commercial Director

Legal Counsel

Quantity Surveyor

Construction Manager

Site Manager

Procurement Manager

Risk Manager

Claims Manager

Chief Operating Officer

Development Director

Technical Director

Principal Contractor

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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