The contract may be terminated by the contracting authority where the contractor fails to fulfil its commitment in accordance with the provisions of the contract and procurement documents, engages in prohibited acts or conduct, becomes bankrupt or becomes unable to perform the work. Where the contracting authority fails to fulfil its obligations, the contractor may terminate the contract. In the event of termination by the contracting authority, as a rule, the performance security is recorded as revenue, the account is settled in accordance with the general provisions and, if the relevant conditions are met, a debarment decision is issued against the contractor. Proper completion of the notice and cure-period procedures before termination is decisive for the validity of the outcome.
Legal basis: Law No. 4735, Articles 19-21
