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
Creativity, conservation and craft at Barley Studio. Book review.
The challenge as PFI agreements come to an end
How construction deals with inherit assets built under long-term contracts.
Skills plan for engineering and building services
Comprehensive industry report highlights persistent skills challenges across the sector.
Choosing the right design team for a D&B Contract
An architect explains the nature and needs of working within this common procurement route.
Statement from the Interim Chief Construction Advisor
Thouria Istephan; Architect and inquiry panel member outlines ongoing work, priorities and next steps.
The 2025 draft NPPF in brief with indicative responses
Local verses National and suitable verses sustainable: Consultation open for just over one week.
Increased vigilance on VAT Domestic Reverse Charge
HMRC bearing down with increasing force on construction consultant says.
Call for greater recognition of professional standards
Chartered bodies representing more than 1.5 million individuals have written to the UK Government.
Cutting carbon, cost and risk in estate management
Lessons from Cardiff Met’s “Halve the Half” initiative.
Inspiring the next generation to fulfil an electrified future
Technical Manager at ECA on the importance of engagement between industry and education.
Repairing historic stone and slate roofs
The need for a code of practice and technical advice note.
Environmental compliance; a checklist for 2026
Legislative changes, policy shifts, phased rollouts, and compliance updates to be aware of.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.