This document discusses various ways that a building contract can be determined or prematurely ended, including: 1) Determination by the employer or contractor due to breach of contract or insolvency of the other party. 2) Premature determination if a supervening event such as illegality, impossibility, or commercial sterility frustrates the purpose of the contract. 3) Force majeure events like acts of God that render performance impossible can also result in premature determination. The duties of the employer and contractor are outlined depending on who determines the contract.

1. Determination of
Building Contracts

2.  Determination by Employer
 Determination by Contractor
 Pre-mature determination

3. Pre-mature determination
 The main cause for pre-mature determination is
frustration
 Generally, a ct is frustrated when further
performance has become illegal/impossible due
to subsequent or supervening event which
rendered the contract :
 (i) illegal
 (ii) impossible
 (iii) commercial sterile

4.  A frustration event must be of such a
nature as to have been unforeseeable,
irresistible and not due to fault of either
contractual party.

5. Goh Yew Chew & Anor v
Soh Kian Tee
The plf entered a ct with the def
(contractor) for the construction of two
storey shop houses in Malacca. The plf
paid $5000 of earnest deposit. The def
later discovered that the building could not
be completed according to plan because
of the proximity to an adjacent house. The
plf claimed for the deposit.

6. Federal court: The contractor claimed that
the plf can not claim for the deposit as the
ct has become frustrated. The ct was not a
frustrated contract where a change of
circumstances vitiated it, but one which
rendered void by initial impossibility. There
was no evidence that construction work on
the buildings had actually started.

7. Force-majeure
 Another circumstances for pre mature
determination.
 The contract shall be determined if the force
majeure event render the contract to become
impossible or illegal to perform.
 The scope of force majeure includes two other
terms:
(i) Act of God
(ii) Vis major
( Refer to notes on EoT)

8. Commercially Sterile
 This circumstances occur when the essential
commercial purpose of the contract has become
frustrated
Bush v Whitehaven Port & Town Trustees
The contract was entered by the parties in summer.
However, due to some fault of the employer, the
performance of the contract was delayed. The delay
resulted higher cost as the works had to be extended
until winter. The contractor claimed for QM.
Held: The contractor is entitled to the QM claim as if
there had been frustrated.

9. Determination by the Employer
 Clause 25.0 PAM 2006
 Cl 25.1-Grounds which give rights to the
employer to determine the contract :
(a) –(f)

10. Duties of contractors upon of
determination of contract by employer
 Clause 25.4(a)-(d)

11. Duties of employers upon
determination of the contract by them
 Clause 25.5-Records of works
 Clause 25.6-Final account

12. Determination by Contractors
 Clause 26: Contractor may determine his
own employment if the employer defaults
in any of the following- cl 26.1 (a)- (d)

13.  Duties of contractors - cl 26.4(a)
- cl 26.5
- cl 26.6
 Duties of employer-cl 26.4(b)

14. Insolvency
 Insolvency is a ground for determination of
the contract:
Insolvency of the contractor- employment of
the contractor shall be automatically
determine-cl 25.3
Insolvency of the employer- employment of
the contractor shall be automatically
determine- cl 26.3