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Contracts & Legal

Notice to Cure

In Plain English

A written warning telling a party they have breached the contract and must fix the problem within a specified time.

Definition

A notice to cure is a formal written notification to a defaulting party identifying the specific contract breach and providing a defined period within which to remedy it before further remedies, including termination, are pursued. The cure period gives the defaulting party an opportunity to correct the deficiency without escalating to full default. Contract terms typically specify required cure periods.

Why It Matters in Bidding

A notice to cure is usually a required step before a party can lawfully terminate for default, so getting it right protects a GC or owner from a wrongful-termination claim and gives a struggling sub a documented chance to recover. For estimators evaluating bids, understanding cure provisions helps assess how much performance risk a low subcontractor price actually carries.

Example

When a framing sub falls weeks behind and ignores schedule recovery requests, the GC issues a notice to cure specifying the missed milestones and a fixed period to ramp up manpower before pursuing supplementation or termination of the subcontract.

Related Terms

DefaultTermination for CauseBreach of ContractNotice

Frequently Asked Questions

It should identify the specific breach in concrete terms, reference the contract provisions violated, state the cure period allowed, and describe the consequences of failing to cure, such as supplementation or termination. Vague notices that simply complain about performance often fail to support later remedies if the dispute reaches a court or arbitrator.
The length is set by the contract; many subcontracts and standard forms specify a short window, often around several days to two weeks, measured from delivery of the notice. Because the period and delivery requirements vary by agreement, the issuing party should follow the contract's exact terms rather than assume a standard duration.
Usually not, where the contract makes notice and an opportunity to cure a condition precedent to termination for default. Skipping the step can expose the terminating party to a wrongful-termination claim. Some contracts allow immediate termination for limited causes like abandonment or insolvency, so the specific provisions control.

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