WorksheetsSBEQ2523 EMPLOYER DETERMINATION
Total questions: 20
Worksheet time: 10mins
What is the primary purpose of "Determination of Employment" in construction contracts?
To enable the contractor to claim additional payments
To terminate the contract for minor breaches
To provide a mechanism for addressing serious breaches of contract
To bypass legal procedures for resolving disputes
Under what circumstances can a construction contract be discharged?
Completion of the project
By breach, agreement, or consent
When the employer delays payment
By non-payment of liquidated damages
Which of the following is NOT a contractor default under Clause 25.1?
Failure to commence the works
Persistent refusal to comply with Architect’s Instructions
Delays caused by force majeure
Abandonment of the works
What must the employer prove to invoke Clause 25.1(a) for failure to commence works?
The contractor failed to submit progress reports
The contractor lacked reasonable cause for failing to start works
The contractor delayed in submitting the work program
The contractor requested an extension of time
What does "reasonable cause" mean in the context of Clause 25.1(b) regarding suspension of work?
Employer's consent to suspend work
Circumstances beyond the contractor’s control
Delays in payment by the subcontractor
Poor performance of workers
What is the most common ground for determination under Clause 25.1(c)?
Failure to provide adequate manpower
Failure to proceed regularly and diligently
Failure to submit claims on time
Failure to remove defective works
Which of the following is NOT considered a failure to proceed regularly and diligently?
Removing labor and plant from the site
Falling significantly behind schedule
Adjusting the work program without notifying the architect
Missing the contract Completion Date
What is the first step in the determination process under Clause 25.2?
Issuance of the determination notice
Issuance of a default notice specifying the contractor's breach
Termination of the contractor’s employment
Hiring a replacement contractor
How many days must the contractor be given to remedy a default after receiving a default notice?
7 days
10 days
14 days
28 days
What should the termination notice include?
The contractor’s progress reports
The date of site handover
Details of the default and the employer’s decision to terminate
A list of potential replacement contractors
After determination, what must the contractor do under Clause 25.4(a)?
Provide a new work program
Immediately vacate the site and cease work
Compensate the employer for all incurred costs
Submit claims for additional costs
What rights does the employer have after determining the contractor’s employment?
To stop all work indefinitely
To complete the works through another contractor or departmentally
To withhold all remaining payments indefinitely
To assign all works to subcontractors
If the contractor disputes the default notice issued under Clause 25.2, what is the next step in the determination process?
The employer must immediately issue the termination notice
The contractor must submit evidence to justify their position
The employer must appoint an arbitrator to resolve the dispute
The contractor is required to vacate the site immediately
What must the employer prove to invoke Clause 25.1(e) regarding subcontracting defaults?
Subcontracting was limited to labor-only services
Subcontracting involved substantial works without prior consent
Subcontracting was for minor tasks
The subcontractor failed to submit a performance bond
What constitutes abandonment of works under Clause 25.1(f)?
Temporary stoppage due to adverse weather
Total cessation of all works without due cause
Delays in material delivery
Temporary removal of labor from the site
What evidence can support claims of abandonment?
Architect’s report on defective works
Contractor’s removal of all resources from the site
Revised project timelines
Employer’s delay in issuing payments
When does the employer lose the right to determine a contractor’s employment?
After issuing a default notice
Upon issuance of the Completion Certificate
Upon failure to assign a new contractor within 28 days
After the defects liability period ends
What is the employer’s obligation regarding temporary buildings after determination?
To permit their continued use by the new contractor
To request their removal by the contractor
To use them for project storage
To demolish them immediately
What happens to the contractor’s financial claims after determination?
The contractor is entitled to all outstanding payments
The employer is relieved of any obligation to make further payments
The contractor must pay penalties for all defaults
All claims are resolved immediately in court
Which case supports that the contractor could not be allowed to stay and continue work at site after his employment had been determined under the contract by Employer
Kong Wah Housing Development SB v Desplan Construction Trading SB
Arab Malaysian Corp Builders SB v ASM Development SB
Fernbrook Trading Co Ltd v Taggart
Jackson v Eastbourne Local Board
