In today's society, most of the construction contracts signed by the employer and the contractor are formulated with reference to the general terms of the construction contract. Therefore, the construction contract usually has a detailed agreement on the time limit for shutdown claims. When the contractor suffers losses due to the employer's shutdown, he shall lodge a claim within the time stipulated in the contract, otherwise he may lose his right to claim.
In any of the following circumstances, the parties may terminate the contract:
1. The purpose of the contract cannot be achieved due to force majeure;
2. Before the expiration of the performance period, one party clearly indicated or indicated by its own behavior that it would not perform the main debt;
3. One party delays the performance of the principal debt and fails to perform it within a reasonable period after being urged;
4. One party delays the performance of debts or commits other breach of contract, which makes the purpose of the contract impossible to achieve;
5. Other circumstances stipulated by law.
Legal basis:
The Supreme People's Court's explanation on the application of law in the trial of construction contract disputes.
Article 8 provides that,
If the contractor is under any of the following circumstances, and the Employer requests to terminate the construction contract of the construction project, it shall be supported:
(a) express or through behavior that the main obligations of the contract have not been fulfilled;
(two) overdue completion of the contract, urged by the employer within a reasonable period of time has not been completed;
(three) the quality of the completed construction project is unqualified and refuses to repair it;
(four) illegal subcontracting or illegal subcontracting of construction projects.