Whether a builder is in 'substantial breach' of a domestic building contract is to be assessed at the time the default notice is served, and the fact that time remains under the contract for completion does not preclude a finding of substantial breach. The obligation not to terminate unreasonably under clause 20.3 governs the owner's conduct in serving the termination notice under clause 20.2, not the default notice under clause 20.1. The reasonableness of termination is assessed by reference to the builder's response to the default notice and the circumstances at the time of termination, not by reference to whether the 14-day default period was sufficient for the builder to complete rectification works.
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