Default in construction contracts
The CCRs 2013 UK Legislation 3134/2013 refers to Default. This default has a different meaning from 'defaulting' here, defined as a breach of contract.
The 'default' in CCRs 3134/2013 is an addition to the invoice which is automatically added without consent from the consumer. Default means the additional charge is continuously in operation, such that the consumer is opted-in to the charge by the trader without consent being received by the trader.
This might be an optional service charge percentage for good on-time work, added by coding the accounting system. The regulation requires express consent to have been received by the trader before the consumer is bound by the contract.
This 'default' in CCR 3134/2013 article 40 is not the same as here - to default, to fail to pay.The following paragraphs refer to 'fail to pay'.
A default is a non-material breach of contract, whereby one party fails to perform a contractual obligation. What specifically constitutes a default will be set out in the contract terms, but generally, 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 obligations because of a minor breach of just one part of the contract.
This is different from a serious, material breach of contract (although the distinction is not clear cut) which may allow the innocent party to consider that they are discharged from any further obligations under the contract.
NB This use of the term default differs from its use with regard to a debt, which is when a debt has not been paid by its due date.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Designing for neurodiversity: driving change for the better
Accessible inclusive design translated into reality.
RIBA detailed response to Grenfell Inquiry Phase 2 report
Briefing notes following its initial 4 September response.
Approved Document B: Fire Safety from March
Current and future changes with historical documentation.
A New Year, a new look for BSRIA
As phase 1 of the BSRIA Living Laboratory is completed.
A must-attend event for the architecture industry.
Caroline Gumble to step down as CIOB CEO in 2025
After transformative tenure take on a leadership role within the engineering sector.
RIDDOR and the provisional statistics for 2023 / 2024
Work related deaths; over 50 percent from constructuon and 50 percent recorded as fall from height.
Solar PV company fined for health and safety failure
Work at height not properly planned and failure to take suitable steps to prevent a fall.
The term value when assessing the viability of developments
Consultation on the compulsory purchase process, compensation reforms and potential removal of hope value.
Trees are part of the history of how places have developed.
The increasing costs of repair and remediation
Highlighted by regulator of social housing, as acceleration plan continues.
Free topic guide on mould in buildings
The new TG 26/2024 published by BSRIA.
Greater control for LAs over private rental selective licensing
A brief explanation of changes with the NRLA response.
Practice costs for architectural technologists
Salary standards and working out what you’re worth.
The Health and Safety Executive at 50
And over 200 years of Operational Safety and Health.
Thermal imaging surveys a brief intro
Thermal Imaging of Buildings; a pocket guide BG 72/2017.