East Devon District Council

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Guide Standard conditions of contract

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43. Break clause

Break Clause Provision – Buyer or Supplier (“the parties”)

Notwithstanding the duration of the contract period, from inception to completion, the employment of the Supplier may be determined by either party at the following points:

  1. not earlier than the end of 6 months from the date of commencement of the contract
  2. at the end of 12 months from the date of commencement of the contract
  3. at any stage, but not earlier than the end of 6 months from the date of commencement of the contract where for reasons of failure to secure sufficient financial resources or for any other circumstance whereby the Council finds itself unable to continue with the project.

All providing at least 6week notice to that effect shall have been given to the other party.

Either party shall invoke a Break clause by notice in writing within 10 working days of a critical point, either before or after the point.

On receipt, by either party as the case may be, of the notice as referred to above, the Supplier shall not, unless otherwise agreed between the parties, be under any obligation to proceed with the Service.

When a Break Clause is invoked and the Supplier’s employment terminated, the Supplier shall be paid by the Buyer either the sums due at the point of break as previously agreed in the tender or, if such sums have not been pre-tendered, as in point (c) above, any such reasonable costs due based on the percentage of the service satisfactorily completed as determined by the Buyer.