Common use of Cancellation – Temporary suspension Clause in Contracts

Cancellation – Temporary suspension. 2.6.1 Cancellation in connection with the specification phase a) Any amount due to the Contractor in respect of such part of the project as has already been completed. b) The Contractor's necessary and documented direct costs in relation to the reassignment of personnel. c) Other documented direct costs incurred by the Contractor as the result of the cancellation, including disbursements and costs that have been incurred by the Contractor prior to its receipt of the notice of cancellation, and which the Contractor is unable to make use of for other purposes. The total cancellation fee for the specification phase may never exceed the consideration for the specification phase agreed in Appendix 7. The consequences that partial cancellation has in respect of the remaining parts of the deliverables, including the effect on the contact price, shall be handled in accordance with the provisions in chapter 3. 2.6.2 Cancellation after the specification phase a) Any amount due to the Contractor in respect of such part of the project as has already been completed. b) The Contractor's necessary and documented direct costs in relation to the reassignment of personnel. c) Other documented direct costs incurred by the Contractor as the result of the cancellation, including disbursements and costs that have been incurred by the Contractor prior to its receipt of the notice of cancellation, and which the Contractor is unable to make use of for other purposes. In addition, the Customer shall pay a cancellation fee equal to the lower of: − four (4) per cent of the contract price, or − six (6) per cent of such part of the contract price as remains unpaid as per the cancellation date, and which has not been paid pursuant to letter a) above either. A different cancellation fee may be agreed between the parties in Appendix 7. In the case of partial cancellation, the cancellation fee shall be calculated on the basis of the share of the contract price accounted for by the cancelled items. The consequences that partial cancellation has in respect of the remaining parts of the deliverables, including the effect on the contact price, shall be handled in accordance with the provisions in chapter 3.