Construction Contracts Act 2013
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Right to suspend work for non-payment. |
5.— (1) Where any amount due under a construction contract is not paid in full by the day on which the amount is due, the executing party may suspend work under the construction contract by giving notice in writing under subsection (2). | |
(2) Notice under this subsection shall specify the grounds on which it is intended to suspend work and shall be delivered to the other party— | ||
(a) not earlier than the day after the day on which the amount concerned is due, and | ||
(b) at least 7 days before the proposed suspension is to begin. | ||
(3) Work may not be suspended under subsection (1)— | ||
(a) after payment by the other party of the amount due, or | ||
(b) after notice has been served by a party to the construction contract under section 6 (2) in relation to a dispute relating to payment of the amount concerned. | ||
(4) Where work is suspended under subsection (1) and the ability of the executing party to complete work within a contractual time limit is affected by the suspension of work, the period of suspension shall be disregarded for the purpose of computing the contractual time limit unless the suspension of work is unjustified in the circumstances. | ||
(5) Where work is suspended under subsection (1) and the ability of a subcontractor to complete work within a contractual time limit is affected by the suspension of work, the period of suspension shall be disregarded for the purpose of computing the contractual time limit. | ||
(6) A period of suspension of work under subsection (1) shall also be disregarded for the purpose of computing the time taken to complete the work under another construction contract where— | ||
(a) the construction contract the work under which is suspended is a subcontract, | ||
(b) the other construction contract is also a subcontract and the other party to that other subcontract is the same as the other party to the subcontract the work under which is suspended, and | ||
(c) the ability of the executing party under that other subcontract to complete work within a contractual time limit is affected by the suspension of work. | ||
(7) This section is without prejudice to the right of the other party to the construction contract under which work is suspended to claim for compensation or damages for any loss due to a suspension of work that is unjustified in the circumstances. |