What is considered when issuing a cure notice?

When issuing a cure notice, the primary consideration is often the endangerment of performance. A cure notice is a formal notification to a contractor that their performance is not meeting contract requirements, and often indicates that corrective action must be taken to prevent further issues, specifically related to performance timelines or quality.

The rationale behind this choice is that a cure notice addresses situations where the performance is at risk of falling below the expected standards, rather than solely focusing on other aspects of the contract like specifications or the contractor’s financial health. The existence of a performance issue that could jeopardize the successful fulfillment of the contract is critical in the decision to issue a cure notice, prompting the contractor to take immediate action to rectify deficiencies.

Considering other factors, while full compliance with contract specifications and a contractor’s overall adequacy may be relevant to performance evaluation, they do not necessarily trigger a cure notice unless they lead to an endangerment of the contract's successful execution. Financial performance alone may not be sufficient grounds for a cure notice without a linkage to how it impacts the contractor’s ability to meet deliverables or performance standards. Thus, contextualizing these elements within the framework of performance risks underpins the selection of the correct answer.