- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 01 Jan 2021
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.
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.
 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.
 Related articles on Designing Buildings Wiki
- Bonds in construction contracts.
- Construction contract conditions
- Contractual obligation.
- Contractual right.
- Delay analysis.
- 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
Advancing sustainable and regenerative project management.
Promised to be pragmatic and practical guidance.
Whilst replacement maybe preferred, its not always possible.
Dealing with draughts and reducing heat loss.
Managing Partner at Onyx and third gen project manager.
Expectation types, management and performance gaps.
Appointments, re-appointments and six changes a year.
New ways to manage the housing crisis.
Consortium seeks signatories for open letter by February 29.
Meaning, understanding and implementation.
From climate to cost to cold bridges and design flexibility.
In a changing world at the APM PM SIG conference.
The glass product that opened up new possibilities.
Campaigning for buildings of all periods.
Get to know the new requirements and the new terms.
The ultimate companion for building services excellence.