Guide letter 32: Advice to client - contractor's breach

Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.

1. When and how?

1.1 In the event of the contractor being in technical breach of an obligation under the contract you must advise your client, you may recommend action, and you must always seek instructions.  

1.2 Provide a factual and unambiguous summary of events and actions taken to ensure the client has a clear understanding of what has transpired.

1.3 At the time of sending this letter you should ensure that all actions required under the contract and all required written instructions have been served on the contractor and that all necessary photographic and documentary evidence, if applicable, is available to prove the breach at a later date.  

2. Content

Advise:

  • nature and extent of the contractor's breach
  • provisions of building contract defining breach procedures and remedies available to both parties
  • actions taken by you to date
  • when the client's instructions are required to avoid any delay or adverse consequences.

Recommend:

  • type of action your client should take in the circumstances
  • legal advice be sought if termination is contemplated.  

Request:

  • instructions.
3. Action

3.1 It is essential that this letter is sent so that the client is fully informed about the state of the project and their remedial rights in relation to any breach by the contractor.  

4. What happens next?

4.1 Implement the client's instructions strictly in accordance with the provisions of the building contract.  

5. Are there other possibilities?

5.1 Where a substantial breach of contract occurs, advice from the client's legal adviser should be sought.

6. What can happen if you don't?

6.1 If you fail to notify the client of the contractor's breach it may exacerbate losses to the client.

7. Copies

7.1 Architect's file. 

Disclaimer

This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.

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