Contract Termination


1. What steps should be taken before the termination of a contract if the contractor / supplier fails to meet contract obligations?
  Before terminating a contract, a reasonable opportunity shall be given to contractors who fail to meet contractual obligations. This includes meetings, written reminders, adequate warnings and issuing a show cause letter. If the contractor does not respond or provide a reasonable explanation, then action can be taken to terminate the contract.

To enable the Government to terminate the contract, termination of contract clauses are to be included in all contracts so that the Government's position is not compromised when a supplier or contractor fails to fulfill their obligation. If necessary, the termination of the contract shall be referred to the Legal Adviser of the Ministry so as to manage the termination in an orderly manner and to avoid any civil action taken against the Government.