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Legal

Right of Termination

Right of the contracting authority or contractor to terminate a procurement contract prematurely under certain conditions.

What is the Right of Termination?

The right of termination in procurement covers the possibilities for authorities and contractors to prematurely end a public contract. § 133 GWB contains special procurement-related termination grounds.

Procurement Termination Grounds (§ 133 GWB)

The authority may terminate when a substantial modification would require new procurement, mandatory exclusion grounds exist (§ 123 GWB — termination then obligatory), optional exclusion grounds arise (§ 124 GWB), or the CJEU finds an EU law violation.

VOB/B Termination (Construction)

Free termination: authority may terminate at any time; contractor receives compensation for performed work plus lost profit. Termination for cause: defective performance, delay, insolvency; no lost profit claim.

Practical Tip

Contract terminations often lead to re-procurement. Patterno notifies you when services are re-tendered after a termination.

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