Default in construction contracts
The CCRs 2013 UK Legislation 3134/2013 refers to Default. This default has a different meaning from 'defaulting' here, defined as a breach of contract.
The 'default' in CCRs 3134/2013 is an addition to the invoice which is automatically added without consent from the consumer. Default means the additional charge is continuously in operation, such that the consumer is opted-in to the charge by the trader without consent being received by the trader.
This might be an optional service charge percentage for good on-time work, added by coding the accounting system. The regulation requires express consent to have been received by the trader before the consumer is bound by the contract.
This 'default' in CCR 3134/2013 article 40 is not the same as here - to default, to fail to pay.The following paragraphs refer to 'fail to pay'.
A default is a non-material breach of contract, whereby one party fails to perform a contractual obligation. What specifically constitutes a default will be set out in the contract terms, but generally, it can be defined as an omission or a failure to do what is expected or required.
If one party defaults, the other party may make a claim for damages, but may not consider it is discharged from any further obligations under the contract. This prevents the innocent party from avoiding their overall obligations because of a minor breach of just one part of the contract.
This is different from a serious, material breach of contract (although the distinction is not clear cut) which may allow the innocent party to consider that they are discharged from any further obligations under the contract.
NB This use of the term default differs from its use with regard to a debt, which is when a debt has not been paid by its due date.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Editor's broadbrush view on forms of electrical heating in context.
The pace of heating change; BSRIA market intelligence
Electric Dreams, Boiler Realities.
New President of ECA announced
Ruth Devine MBE becomes the 112th President of the Electrical Contractors Association.
New CIAT Professional Standards Competency Framework
Supercedes the 2019 Professional Standards Framework from 1 May 2025.
Difficult Sites: Architecture Against the Odds
Free exhibition at the RIBA Architecture Gallery until 31 May.
PPN 021: Payment Spot Checks in Public Sub-Contracts
Published following consultation and influence from ECA.
Designing Buildings reaches 20,000 articles
We take a look back at some of the stranger contributions.
Lessons learned from other industries.
The Buildings of the Malting Industry. Book review.
Conserving places with climate resilience in mind.
Combating burnout.
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.