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
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.
The story of this knowledge quarter building.
In ecology, in hydrology, in biology and in architecture.
Creating environments that promote physical, mental, and social well-being.
UK cases of neutral current diversion
Research project looks for example contributions.
Overstocking and macro-economics cause a decline.
The 2024 update of the Common Assessment Standard
Demonstrating organisational capability’ to fulfil roles under the Building Safety Act.
56 recommendations for a better built environment
Published by the CIC ahead of the King’s Speech.
SkillELECTRIC Top 8 Competitors Named
in annual search for the UK’s best student electrician.
CIOB Diversity and Inclusion technical information sheet
Step-by-step guide on implementing D and I practices.
Conservation and the Indian City. Book review.
Reversibility in conservation ethics
Learning from painting conservation.
Where It's AT Podcast launched!
New CIAT Architectural Technology Podcast goes live.