What constitutes a default under the A201 contract?

• A. It means completing the work ahead of schedule.
• B. It is limited to financial insolvency.
• C. It means the Owner can unilaterally cancel without notice.
• D. Failure to perform obligations, failure to cure, nonpayment, insolvency, or repeated nonconformance with contract requirements.

Answer: (D)

In AIA A201, a default means a failing to meet the contract obligations in a way that justifies termination for cause or suspension. The standard describes default as an event such as failing to perform or comply with contract requirements, failing to cure after proper written notice, nonpayment, insolvency, or repeated nonconformance with contract requirements. This framing shows that a default is about ongoing or repeated failure to fulfill duties, not about good outcomes like finishing early, and not just insolvency in isolation. The process also requires proper notice and an opportunity to cure before termination, so unilateral cancellation without notice isn’t how it works.