Security Of Payment Act – Notice To Suspend Work

When You Can Suspend Work Under The Security Of Payment Act

A claimant may suspend the carrying out of construction work (or the supply of related goods and services) under a construction contract if at least 2 business days have passed since the claimant has caused notice of intention to do so to be given to the respondent because the Respondnet has not paid a Payment Claim in full by the due date or if the Claimant has applied for Adjudication under the Security Of Payment Act.

When You Must Return To Work After Suspending Work Under The Security Of Payment Act

The right conferred to the Respondent exists until the end of the period of 3 business days immediately following the date on which the claimant receives payment for the amount that is payable by the respondent.

Can the Claimant Claim For Loss Or Expenses If The Respondent Removes The Claimant Whilst The Claimant Has Suspended Work Under The Security Of Payment Act

If the claimant, in exercising the right to suspend the carrying out of construction work or the supply of related goods and services, incurs any loss or expenses as a result of the removal by the respondent from the contract of any part of the work or supply, the respondent is liable to pay the claimant the amount of any such loss or expenses.

Is the Claimant Liable For Loss Or Expenses That The Respondent Might Incur Whilst The Claimant Has Suspended Work Under The Security Of Payment Act

A claimant who suspends construction work (or the supply of related goods and services) in accordance with the right conferred by by the Act is not liable for any loss or damage suffered by the respondent, or by any person claiming through the respondent, as a consequence of the claimant not carrying out that work (or not supplying those goods and services) during the period of suspension.

For assistance at any stage call 1300 RECOUP (1300 732 687)

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