Local Governments, as part of their day to day functions, find
themselves party to contracts in a wide variety of circumstances.
Procurement of goods or services is often considered the main arena
of local government contracts. However, many other divisions of
local government also contract on a regular basis including for
property and asset management, engineering and governance.
Whilst contracts are designed to govern what the parties are
required to do and when they are required to do it a contract
should also provide for what happens if things do not go according
to plan or if one party fails to do what they are contracted to do
either wholly or in part.
The right to terminate is integral to a contract, but there can
be costly consequences if a party gets this wrong.