S.L. 601.05 · Part VIII · Contract Performance and Modifications

Regulation 180. Termination of contracts

Text of the consolidated version in force from 1 January 2024. Where this page and legislation.mt differ, legislation.mt prevails: official textThe Maltese and the English texts are both official; where they conflict, the Maltese text prevails. This page shows the English text.

(1) Contracting entities can terminate a contract during its term, where:

(a) the contract has been subject to a substantial modification, which would have required a new procurement procedure pursuant to regulation 177;

(b) the contractor has, at the time of contract award, been in one of the situations referred to in Part VI of the Public Procurement Regulations, 2016, and should therefore have been excluded from the procurement procedure;

(c) the contract should not have been awarded to the contractor in view of a serious infringement of the obligations under the Treaties and these regulations that has been declared by the Court of Justice of the European Union in a procedure pursuant to Article 258 of the TFEU;

(d) the contractor fails to discharge any obligation which he has contracted.

(2) If the contracting authority has no valid reason for the termination, it is to compensate the contractor for all his expenses and work and to pay him a sum to be fixed by the court, according to circumstances, but not exceeding the profits which the contractor could have made by the contract.

(3) If the contracting authority has valid reason for the termination, it is to pay the contractor only such sum which shall not exceed the actual proven expenses and work of the contractor.

(4) Any payment made in advance to the contractor before the termination of the contract shall be applied to the sums due in terms of sub-regulations (2) or (3) and the contractor shall return any resulting excess to the contracting authority.

(5) The contract shall be immediately terminated when the contracting authority informs the contractor, by any means whatsoever, of his decision to terminate the contract, and this without the need of any authorization or confirmation by any court or Board.

Cross-references

This regulation refers to

177

Referred to by

172

Previous regulation

179 — Procedure for the approval of modifications and appeals

Next regulation

181 — Remedies

Want your tender documents checked before publication? We will show you how Procurelex Verifika does it.

Request a demo

General information on the Public Procurement Regulations in force. Not legal advice.