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Termination of the contract under FIDIC: The perspective of Bosnia and Herzegovina

FIDIC Forms of Contract in recent years are often used for regulation of rights and obligations of the investors and the contractors on the construction projects in Bosnia and Herzegovina, in particular in construction of the highways, railways and dams. Majority of the projects is finalized without significant disputes between the parties. However, in certain cases disputes between the parties escalate in such magnitude that one of the parties decides to terminate the contract. Due to severity of the financial consequences of the termination, it is necessary to emphasise interplay between the Laws on Obligations in Bosnia and Herzegovina and FIDIC Forms. A careful approach to the issue of the termination could prevent complicated and expensive arbitral proceedings.