We see the cure notice as an opportunity to tell the owner why we don't think we're in default , said John Onnembo , Jr. , vice president and corporate counsel for Morse Diesel International , Inc. ( New York City ) , a general contractor
To draft a plan , you must address questions such as how much you'll need to accelerate to finish faster.Whatever you decide to do , he
said , make sure you can deliver.This is a high-stakes game of chicken.We better be sure we can do it : it could put us out of business , and the bonding company could pull the money..
Contractors or subs who are responding to a notice to cure should take steps to protect their rights , Onnembo
contracting company adds reservation of rights language that , for instance , states the company considers the cure notice to be an acceleration notice and that the contractor will charge for resulting acceleration costs.
Examine these elements for nonperforming subs
1. Schedule.Nonperforming subs don't happen overnight.Generally , there's been some float time to work it through.If a sub's delay is affecting the project , you can face liquidated damages.