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Section 9Disputes and Termination

Clause 91.8

Termination — Corrupt Act by Contractor (R22)

Purpose

The Client may terminate if the Contractor does a Corrupt Act, unless it was done by a Subcontractor or supplier and the Contractor was not and should not have been aware of the act, or informed the PM and took action to stop it as soon as aware.

Practical Application

Corrupt acts by the Contractor give the Client immediate termination rights. If a subcontractor committed the act, the Contractor has a defence if it was genuinely unaware and acted promptly.

Common Pitfalls

The defence requires both that the Contractor was unaware AND took prompt corrective action. Failure on either element leaves the Contractor exposed to termination for the subcontractor's act.

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.