notice of contract default letter sample

Working through an issue will almost always be cheaper and easier than cutting bait with a contractor or sub and moving forward with someone else, and it will definitely be cheaper than pursuing legal action. On top of any “requirements”, it just makes good business sense to give some form of notice before contemplating termination or sending a claim. Sending notice of default or notice of defective work might be mandatory under the contract or statute. When there’s a problem, it’s a good idea to send notice before taking action. Notice May Be Required (and Should Be Sent, Regardless) But keep in mind – if the right to cure is specifically set out by contract or if your state has rules surrounding the right to cure, those requirements must be followed. Plus, if the ultimate goal is to fix the issue, terminations or legal claims aren’t an efficient way to do that.īelow are some general procedural guidelines. There’s no reason to lose rights or create liability over a technicality. Those procedures can often be found in the contract, or they might be created specifically through statute.Įven if the contract and state law are both silent, it’s a good idea to take a conservative approach. When the right to cure is in play, specific notice procedures might be necessary. Most disputes in the construction industry can be resolved with better communication and collaboration, and this forces the parties to try and talk it out. The whole point of creating a right to cure is to resolve disputes before drastic actions are taken. The Right to Cure May Involve Careful Procedure

Termination for Convenience | Can Your Customer Terminate You Without Good Reason?.

Termination for Cause | When Can Construction Contracts Be Terminated for Cause?.How a Termination Clause Works in a Construction Contract.With an opportunity to cure, there’s one last opportunity to fix prior mistakes before a battle ensues. The right to cure may apply to a number of different things: defective materials, violation of building codes, failure to follow specifications, or simply falling below the standard of workmanlike construction.

Even if the issue can’t be completely resolved, it can present the opportunity to mitigate whatever problem is present. This opportunity can benefit everyone – it can help avoid nasty payment disputes while also getting the project back on track, or, it can help avoid a legal battle over defect claims.

When faced with possible termination or defect claims, contractors and subs may be entitled to the right to cure their own material breach. What Happens if the Opportunity to Cure Isn’t Given?.Notice May Be Required (and Should Be Sent, Regardless).The Right to Cure May Involve Careful Procedure.

Notice of contract default letter sample