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Contracts & Legal

Default

In Plain English

When a contractor or owner seriously fails to meet their contract obligations and does not fix the problem when given notice.

Definition

A default in a construction contract occurs when a party materially fails to perform its obligations and does not cure that failure within the time specified in a notice to cure. Common contractor defaults include abandonment of work, failure to pay subcontractors, and failure to maintain required insurance. Default triggers remedies including termination and surety bond claims.

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