Non-performance in the construction industry
Non-performance is a general term that describes a party which fails to perform; in fact, the term can cover all forms of failure in performance. A student who fails end-of-year exams may be regarded by the school as a non-performer. In this respect, non-performance is not contractually linked – the student never promised to do well and there was no contact entered into, written or otherwise.
In simple terms, a contract is a legally-binding promise. From a legal perspective, the basis of every contract is that all parties must fulfil all of the contract's terms. Non-performance occurs when one party to the contract does not fulfil the contract terms – failing to live up to their contractual obligations. Such a failure is not necessarily a breach of contract although it could lead to a breach of contract.
A breach of contract in English Law is non-performance that is not excused because it is the non-performance of a contractual obligation, i.e. a promise was made and was not kept. A breach of contract entitles the innocent party to receive damages from the guilty party. It may also allow the innocent party the right to terminate the contract.
An example of non-performance is a contractor who fails to provide sufficient labour, materials or equipment to a project, leading to a delay to the completion date.
Bonds can provide a degree of protection for the client. Bonds are an undertaking by a bondsman or surety to make a payment in the event of non-performance. Bonds can be 'on demand' or 'conditional', with conditional bonds requiring that the client provides evidence of the contractor's non-performance, and that as a consequence the client has suffered a loss.
[edit] Refusal to perform or declaration of non-performance
A declaration of non-performance is another form of non-performance. One party declares they are abandoning any further performance under the contract or refuses to fulfil an essential aspect of the contract. In this case, the innocent party can discharge themselves from any further performance obligations.
[edit] Related articles on Designing Buildings Wiki
- Bonds in construction contracts.
- Construction contract conditions
- Contractual obligation.
- Contractual right.
- Delay analysis.
- JCT
- JCT Construction management contract
- Performance bond
- Procurement team
- Standard form of contract
- Tender documentation for construction projects
- Traditional contract for construction
- Traditional contract: tender
- Typical tender process for construction projects
Featured articles and news
Cladding remediation programmes, transparency and target date.
National Audit Office issue report on cladding remediation.
HBPT and BEAMS Jubilees. Book review.
Does the first Labour budget deliver for the built environment?
What does the UK Budget mean for electrical contractors?
Mixed response as business pays, are there silver linings?
A brownfield housing boost for Liverpool
A 56 million investment from Homes England now approved.
Fostering a future-ready workforce through collaboration
Collaborative Futures: Competence, Capability and Capacity, published and available for download.
Considerate Constructors Scheme acquires Building A Safer Future
Acquisition defines a new era for safety in construction.
AT Awards evening 2024; the winners and finalists
Recognising professionals with outstanding achievements.
Reactions to the Autumn Budget announcement
And key elements of the quoted budget to rebuild Britain.
Chancellor of the Exchequer delivers Budget
Repairing, fixing, rebuilding, protecting and strengthening.
Expectation management in building design
Interest, management, occupant satisfaction and the performance gap.
Connecting conservation research and practice with IHBC
State of the art heritage research & practice and guidance.
Innovative Silica Safety Toolkit
Receives funding boost in memory of construction visionary.
Gentle density and the current context of planning changes
How should designers deliver it now as it appears in NPPF.
Sustainable Futures. Redefining Retrofit for Net Zero Living
More speakers confirmed for BSRIA Briefing 2024.
Making the most of urban land: Brownfield Passports
Policy paper in brief with industry responses welcomed.
The boundaries and networks of the Magonsæte.