Termination Pre-requisites
Where the Administration’s contracting partner does not comply with the contract provisions or related service orders, as appropriate, the Project Owner or the Delegated Project Owner shall issue a formal notice requiring him to comply within a specified period.
Such period may not be less than 21 (twenty–one) calendar days, except otherwise stated for in the Special Administrative Clauses.
The application of the provisions of (1) and (2) above shall have no incidence on any delay penalties.
Where the Administration’s contracting partner fails to comply with the provisions of Article 180 of the code, the Project Owner may:
(a) prescribe full or partial State supervision at the expense and risk of the said Administration’s contracting partner;
(b) or terminate the contract against and at the cost and risk of the Administration’s contracting partner.
The terms and conditions for terminating public contracts and the effects thereof shall be laid down in the General Administrative Clauses, subject to the provisions of Articles 185, 186 and 187 of the code.
Grounds for Termination
The Project Owner shall automatically terminate a contract in one of the following cases:
(a) death of the allotee.
In this case, the Project Owner may, where applicable, authorize that the proposals made by the rightful claimants to continue service provision be accepted;
(b) bankruptcy of the allotee.
In this case, the Project Owner may, where applicable, accept proposals that could be made by creditors to continue service provision;
(c) judicial liquidation, if the Administration’s contracting partner is not authorized by the court to continue operating his business;
(d) in case of sub-contracting, co-contracting or subsidiary orders, without the prior authorization of the Project Owner or the Delegated Project Owner;
(e) default by the Administration’s contracting partner duly established and notified by the Project Owner or the Delegated Project Owner;
(f) failure to comply with labour laws and regulations;
(g) significant price variation under the conditions laid down by the General Administrative Clauses, due to changes in economic conditions or in the initial quantities of the contract;
(h) duly established fraudulent and corrupt practices.
Notwithstanding the provisions of Article 182 of this code, the Project Owner or the Delegated Project Owner may, in case of force majeure and after obtaining the opinion of the Authority in charge of public contracts, terminate a contract without the Administration’s contracting partner being liable, and without prejudice to damages that he may claim.
Consequences of Termination
- The Administration’s contracting partner whose contract is terminated for the reasons referred to in Article 182(d), (e) and (h) of the code, may not, except by special waiver by the Authority in charge of public contracts, tender before a period of 2 (two) years from the date of notification of the termination.
In case of default in service provision, such ban shall apply without prejudice to payment by the Administration of services already provided.
- Where the ban referred to above concerns a natural person or a sole proprietorship, it shall equally apply to any other undertaking subsequently established during the said period by the defaulter or, in case of a sole proprietorship, by the manager.
For limited liability companies, this provision shall apply to the manager.
- The Project Owner or the Delegated Project Owner shall be bound to forward termination documents to the public contracts regulatory body in order to update the files of those penalized.
Any termination decided in accordance with the provisions of Article 182 shall not imply the application of the provisions of Article 184 of the code.
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