Overview
This regulation places an obligation on contracting authorities to ensure that every public contract incorporates certain termination rights. This includes situations where the contract has been subject to a substantial modification which would have required a new procurement procedure in accordance with regulation 72 PCR 2015 (modification of contracts during their term), or where, at the time of contract award, the supplier should have been excluded from the procurement for meeting one or more grounds for exclusion.
The regulation also provides that the contract provisions may set out the basis on which the mandatory termination rights shall operate e.g. by providing a notice of termination and by addressing consequential matters that will or might arise from the termination.
To the extent that a public contract does not include the termination rights required under this regulation (i.e. regulation 73), these rights must be treated as implied terms of the contract and may be exercisable on the contracting authority giving reasonable notice to the supplier.