Consider the following statements regarding the right of the contractor to terminate : 1. If the work is stopped by a court order for three months or more for any reasons. 2. If the architect fails to issue the certificate of payment in the stipulated period. 3. If the owner fails to pay the contractor after the stipulated period or certification for the payment from the consultant or the arbitrator. Which of the above statements is/are correct ?
- A1 and 2
- B2 and 3Correct
- C1 and 3
- D2 only
Solution
Concept
Grounds for termination by the contractor
Step-by-step solution
1. Non-payment by the owner and failure of the architect to issue a payment certificate are standard grounds for termination by the contractor (statements 2 and 3). 2. Statement 1 gives a three-month period; the usual standard form specifies a shorter stoppage period (such as 30 days), so it is treated as incorrect.
Explanation
The contractor may terminate when the owner or the architect fail to meet payment obligations.
Why the other options are wrong
Statement 1 specifies a period that differs from the standard form.
Shortcut
Contractor may terminate for non-payment.
Correct answer: B) 2 and 3