A notice of default under a building contract should be construed non-technically, in accordance with business common sense, and by reference to how a reasonable recipient would understand it; surplusage in the notice does not invalidate it. A contractual warranty to perform building works with due diligence and within the stipulated time creates two separate obligations, not a conjoint one. The onus of proving a builder's failure to exercise due diligence lies on the party alleging breach, and delay in progress may evidence lack of due diligence only where there is a failure to carry out a reasonable amount of work measured against all work performed, or a lack of activity over a significant period that cannot be satisfactorily explained.
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