Subcontractor Default Notice

Use it when a subcontractor has missed a contractual obligation, delivered defective work, or otherwise failed to perform under the subcontract. It is meant to create a formal record before you move to cure, backcharge, suspension, or termination. If the issue is only a minor coordination problem with no contractual breach, an informal email may be enough. This template is for situations where you need the notice to be precise and defensible.

The default description should state the specific conduct or omission, the date it was first observed, and how it relates to the subcontract clause reference. Keep it factual and avoid argumentative language. If there are photos, logs, inspection notes, or correspondence, reference them in supporting documents. The goal is to make the notice easy to verify from the project record.

It is typically issued by the prime contractor, project manager, contract administrator, or another authorized representative named in the subcontract. The sender should have enough authority to trigger contractual notice procedures and preserve remedies. Use the issued_by_name and issued_by_title fields to make that authority clear. If your organization requires legal review, route the draft before delivery.

The cure period is the number of days the subcontractor has to correct the default after receiving notice, if the subcontract allows one. Enter the cure_period_days and calculate the cure_deadline from the delivery date and the contract terms. If the subcontract has different cure rules for different defaults, use the clause reference to tie the deadline to the correct provision. Do not assume a standard period if the subcontract says otherwise.

The remedy_selected field can point to the action you are reserving or taking, such as requiring corrective work, withholding payment, backcharging, supplementing the work, or termination if the contract allows it. The remedy_details field should explain the contractual basis and any conditions that must be met before the remedy is exercised. Keep the reservation_of_rights language broad enough to preserve all available contract rights. Avoid overstating remedies that the subcontract does not support.

It creates a dated audit trail showing what was noticed, when it was observed, what clause applies, and what action was demanded. That record is useful if the issue later becomes a payment dispute, claim, or termination review. It also helps keep the notice focused on contract facts rather than informal complaints. For regulated projects, the same record can support internal review and project closeout documentation.

Common mistakes include leaving out the subcontract clause reference, using vague language like "poor performance," and failing to state a clear cure deadline. Another frequent issue is asking for corrective action without explaining what must be fixed or how success will be measured. People also forget to document delivery method and acknowledgment status, which weakens the notice trail. This template is designed to prevent those gaps.

Yes. You can tailor the default categories, required corrective action language, and remedy options to fit construction, specialty trade, design-assist, or service subcontracting. You can also adapt the delivery_method field for email, certified mail, hand delivery, or portal notice if the subcontract permits it. If your workflow uses document management or contract systems, the template can be mapped to those records. Keep the core fields intact so the notice remains contract-ready.