Construction Contracts Act 2013

Right to suspend work for failure to comply with adjudicator’s decision.

7.— (1) Where any amount due pursuant to the decision of the adjudicator is not paid in full before the end of the period of 7 days beginning with that on which the decision is made, 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 not later than 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 the decision of the adjudicator is referred to arbitration or proceedings are otherwise initiated in relation to the decision.

(4) Where work is suspended under subsection (1) and the ability of the executing party or 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.

(5) 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.