Notice of Default

A notice of default is a formal written communication sent by one party to another, informing them of a failure to fulfill their contractual obligations. In construction, a notice of default may be issued by an owner to a contractor for reasons such as significant delays, substandard work, or non-payment of subcontractors. The notice typically includes a description of the specific default, the relevant contract provisions, the consequences of the default, and the steps required to cure the default within a specified time frame. The purpose of a notice of default is to formally acknowledge the breach of contract, put the defaulting party on notice, and provide an opportunity for remedial action before terminating the contract or pursuing legal action. A notice of default is a serious step that can have significant legal and financial implications.