Subpart 4—Suspension of work

Subpart 4: inserted, on 1 December 2015, by section 25 of the Construction Contracts Amendment Act 2015 (2015 No 92).

24A Suspension of construction work

(1)

A party who carries out construction work under a construction contract (party A) has the right to suspend work under that contract if—

(a)

any of the following circumstances applies:

(i)

a claimed amount is not paid in full by the due date for its payment, and no payment schedule has been provided by the party who it is claimed is liable for the payment (party B):

(ii)

a scheduled amount is not paid in full by the due date for its payment even though a payment schedule given by party B indicates a scheduled amount that party B proposes to pay to party A:

(iii)

party B has not complied with an adjudicator’s determination that party B must pay an amount to party A by a particular date; and

(b)

party A has served on party B a notice under section 23(2)(b), 24(2)(b), or 59(2)(b), as the case may be; and

(c)

the amount mentioned in paragraph (a)(i) or (ii) is not paid, or the determination mentioned in paragraph (a)(iii) is not complied with, within 5 working days after the date of that notice.

(2)

If party A exercises the right conferred by subsection (1), party A—

(a)

is not in breach of the construction contract; and

(b)

is not liable for any loss or damage suffered by party B, or by any person claiming through party B; and

(c)

is entitled to an extension of time to complete the contract, but is not entitled solely by reason of this Act to recover any costs incurred as a consequence of the extension of time; and

(d)

keeps party A’s rights under the contract, including any right to terminate the contract; and

(e)

may at any time lift the suspension, even if the amount has not been paid or the determination has not been complied with.

(3)

To avoid doubt, subsection (2)(c) does not affect party A’s rights to recover (whether in an adjudication or otherwise) any costs incurred as a consequence of the extension of time that exist other than solely by reason of this Act, nor does it add anything to those rights.

(4)

If party A exercises the right conferred by subsection (1), the exercise of that right does not—

(a)

affect any rights that would otherwise have been available to party A under subpart 3 of Part 2 of the Contract and Commercial Law Act 2017; or

(b)

enable party B to exercise any rights that may otherwise have been available to party B under that subpart as a direct consequence of party A exercising the right conferred by subsection (1).

(5)

The right to suspend work under a construction contract ceases when party B pays the amount in full or complies with the adjudicator’s determination.

Compare: 2002 No 46 s 72

Section 24A: inserted, on 1 December 2015, by section 25 of the Construction Contracts Amendment Act 2015 (2015 No 92).

Section 24A(4)(a): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).

Section 24A(4)(b): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).