Whilst PPPs are rarely terminated, the contract sets out certain circumstances in which the Contract can be ended prior to its natural expiry. The Contract also makes detailed provision for the compensation, if any, to be paid on termination, usually by the Board to the Contractor. There are three main headings under which the Contract can be terminated:-
23.1 Default by the Contractor (paragraph 24);
23.2 Default by the Board (paragraph 25); and
23.3 Non Default Termination (i.e. Force Majeure Termination and Board Voluntary Termination) (paragraph 27).
Additionally the Contract may be terminated for corrupt gifts (see paragraph 26) and uninsurability (see paragraph 29.4).