Repudiatory breach in construction contracts
If one of the parties to a contract fails to perform their obligations, this may constitute a breach of contract. A breach of contract may entitle the innocent party to make a claim for damages for the losses it has suffered.
However, where one of the parties to a contract behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, this is considered to be a repudiatory breach (or fundamental breach) allowing the innocent party to terminate the contract and to sue for damages.
Generally the contract will set out behaviour that constitutes a repudiatory breach, and this might include:
- Refusal to carry out work.
- Abandoning the site.
- Removing plant from the site.
- Failure to make payments.
- Employing others to carry out the work.
- Failure to allow access to the site.
- Failure to proceed regularly and diligently.
- Failure to remove or rectify defective works.
- Defaults from Statutory Agencies.
- Bankruptcy or Insolvency of the contractor or employer.
Where repudiation is considered to have occurred, the innocent party can either affirm that the contract will continue or accept the repudiation and so terminate the contract. Either way, it is important that there is some sort of response, as inaction may be considered to be an affirmation of the contract.
Whatever course of action is taken, the innocent party will have the right to claim damages.
An anticipatory breach (or anticipatory repudiation) occurs when one of the parties to the contract declares to the other that they do not intend to perform their obligations under the contract.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
CIOB launches global mental health survey
To address the silent mental health crisis in construction.
New categories in sustainability, health and safety, and emerging talent.
Key takeaways from the BSRIA Briefing 2024
Not just waiting for Net Zero, but driving it.
The ISO answer to what is a digital twin
Talking about digital twins in a more consistent manner.
Top tips and risks to look out for.
New Code of Practice for fire and escape door hardware
Published by GAI and DHF.
Retrofit of Buildings, a CIOB Technical Publication
Pertinent technical issues, retrofit measures and the roles involved.
New alliance will tackle skills shortage in greater Manchester
The pioneering Electrotechnical Training and Careers Alliance.
Drone data at the edge: three steps to better AI insights
Offering greater accuracy and quicker access to insights.
From fit-out to higher-risk buildings.
Heritage conservation in Calgary
The triple bottom line.
College of West Anglia apprentice wins SkillELECTRIC gold.
Scottish government launch delivery plan
To strengthen planning and tackle the housing emergency.
How people react in ways which tend to restore their comfort.
Comfort is a crucial missing piece of the puzzle.
ECA launches Recharging Electrical Skills Charter in Wales
Best solutions for the industry and electrical skills in Wales.
New homebuilding skills hub launch and industry response
Working with CITB and NHBC to launch fast track training.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.