The Construction Contract Termination Agreement is a critical document used when parties to a Swiss construction contract mutually agree to end their contractual relationship or when termination occurs under specific circumstances defined in the original contract. This document, governed by Swiss law, particularly the Code of Obligations (OR) and SIA Norm 118, provides a comprehensive framework for managing the termination process. It includes essential provisions for financial settlements, work handover, documentation transfer, and mutual releases, while addressing specific Swiss legal requirements such as statutory liens (Bauhandwerkerpfandrecht). The agreement is particularly important in complex construction projects where clear documentation of the termination terms and post-termination obligations is crucial for risk management and legal certainty.
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1. Parties: Identification of the contracting parties (typically the Principal/Owner and the Contractor)
2. Background: Context of the original construction contract, key events leading to termination, and purpose of this agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination: Clear statement of termination, effective date, and basis for termination
5. Status of Works: Description of the current status of construction works and acknowledgment by both parties
6. Financial Settlement: Agreement on final payments, including completed works, materials, and any termination-related costs
7. Handover of Site and Materials: Process and timeline for site handover, treatment of materials, equipment, and temporary works
8. Documentation and Warranties: Transfer of relevant documentation, warranties, and intellectual property rights
9. Mutual Release and Waiver: Mutual release from claims and obligations, except as specifically preserved
10. Confidentiality: Obligations regarding confidential information post-termination
11. Surviving Provisions: Identification of contract provisions that survive termination
12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes
1. Dispute Resolution: Specific dispute resolution mechanisms - include if parties want to specify particular procedures beyond court jurisdiction
2. Insurance: Provisions regarding ongoing insurance obligations - include if there are continuing warranty periods or outstanding risks
3. Third Party Rights: Treatment of subcontractor rights and obligations - include if there are significant subcontractor relationships
4. Defects Liability: Ongoing responsibilities for defects - include if work was substantially completed
5. Public Announcements: Protocol for public communications - include for high-profile projects
6. Bank Guarantees and Securities: Treatment of existing guarantees and securities - include if any are in place
7. Environmental Obligations: Ongoing environmental responsibilities - include if there are environmental sensitivities
8. Employee Matters: Treatment of employment issues - include if there are direct employment implications
1. Schedule 1 - Original Contract: Copy or details of the original construction contract being terminated
2. Schedule 2 - Works Status Report: Detailed report on the status of completed and incomplete works
3. Schedule 3 - Financial Statement: Detailed breakdown of final account, including payments made and outstanding
4. Schedule 4 - Inventory of Materials: List of materials and equipment on site and their agreed disposition
5. Schedule 5 - Outstanding Claims: List of any preserved claims or ongoing obligations
6. Schedule 6 - Handover Protocol: Detailed procedure for site handover and documentation transfer
7. Schedule 7 - Required Warranties: List of warranties to be provided or maintained post-termination
8. Appendix A - Site Documentation: As-built drawings, technical documentation, and certificates to be handed over
9. Appendix B - Form of Release: Template for any required release documents from subcontractors or suppliers
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Commercial Property
Industrial
Residential Development
Healthcare
Education
Hospitality
Retail
Energy
Transportation
Public Sector
Manufacturing
Relevant Teams
Legal
Construction
Project Management
Operations
Commercial
Finance
Risk Management
Procurement
Technical Services
Development
Facilities Management
Compliance
Contract Administration
Relevant Roles
Construction Manager
Project Director
Contract Manager
Legal Counsel
General Counsel
Project Manager
Site Manager
Quantity Surveyor
Chief Executive Officer
Commercial Director
Operations Director
Risk Manager
Procurement Manager
Financial Controller
Technical Director
Development Manager
Facilities Manager
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