Default in construction contracts
(Created page with "A default is a non-material breach of contract, whereby one party fails to perform the specific terms of a contractual obligation. Often, what constitutes a default will be speci...") |
|||
| Line 1: | Line 1: | ||
A default is a non-material breach of contract, whereby one party fails to perform the specific terms of a contractual obligation. Often, what constitutes a default will be specifically identified within contract terms, but in general terms it can be defined as an omission or a failure to do what is expected or required. | A default is a non-material breach of contract, whereby one party fails to perform the specific terms of a contractual obligation. Often, what constitutes a default will be specifically identified within contract terms, but in general terms it can be defined as an omission or a failure to do what is expected or required. | ||
| − | + | If one party defaults, the other party may make a claim for damages, but may not consider it is discharged from any further obligations under the contract. This prevents the innocent party from avoiding their overall performance because of a minor breach of just one part of the contract. | |
| − | + | NB This differs from the use of the term ‘default’ with regard to a debt, which is when a debt has not been paid upon its due date. | |
| − | + | ||
| − | + | ||
= Find out more = | = Find out more = | ||
Revision as of 09:49, 17 April 2018
A default is a non-material breach of contract, whereby one party fails to perform the specific terms of a contractual obligation. Often, what constitutes a default will be specifically identified within contract terms, but in general terms it can be defined as an omission or a failure to do what is expected or required.
If one party defaults, the other party may make a claim for damages, but may not consider it is discharged from any further obligations under the contract. This prevents the innocent party from avoiding their overall performance because of a minor breach of just one part of the contract.
NB This differs from the use of the term ‘default’ with regard to a debt, which is when a debt has not been paid upon its due date.
Find out more
Related articles on Designing Buildings Wiki
- Bonds v guarantees.
- Breach of contract.
- Causes of construction disputes.
- Change order.
- Compensation events.
- Contract claims.
- Loss and expense.
- Variations.
Featured articles and news
Infrastructure that connect the physical and digital domains.
Harnessing robotics and AI in challenging environments
The key to nuclear decommissioning and fusion engineering.
BSRIA announces Lisa Ashworth as new CEO
Tasked with furthering BSRIA’s impressive growth ambitions.
Public buildings get half a million energy efficiency boost
£557 million to switch to cleaner heating and save on energy.
CIOB launches pre-election manifesto
Outlining potential future policies for the next government.
Grenfell Tower Inquiry announcement
Phase 2 hearings come to a close and the final report due in September.
Progress from Parts L, F and O: A whitepaper, one year on.
A replicated study to understand the opinion of practitioners.
ECA announces new president 2024
Electrical engineer and business leader Stuart Smith.
A distinct type of countryside that should be celebrated.
Should Part O be extended to existing buildings?
EAC brands heatwave adaptation a missed opportunity.
Definition of Statutory in workplace and facilities management
Established by IWFM, BESA, CIBSE and BSRIA.
Tackling the transition from traditional heating systems
59% lack the necessary information and confidence to switch.
The general election and the construction industry
As PM, Rishi Sunak announces July 4 date for an election.
Eco apprenticeships continue help grow green workforce
A year after being recognised at the King's coronation.
Permitted development rights for agricultural buildings
The changes coming into effect as of May 21, 2024.