Singapore legislation
Clause 26
of Building and Construction Industry Security of Payment Bill
Clause 26
Right to suspend work or supply
(1)
Subject to the provisions of this Act, a claimant may suspend the carrying out of construction work, or the supply of goods or services, under a contract if, and only if —
the claimant has served on the respondent the notice referred to in section 23(1)(b);
a copy of the notice has been served by the claimant on the principal (if known) and the owner concerned;
7 days have elapsed since the notice was served on the respondent, the principal (if known) and the owner, or since the last of them was served the notice; and
the claimant has not been paid the adjudicated amount.
(2)
During the period of suspension exercised in accordance with subsection (1) —
the claimant is not liable to the respondent, the principal or the owner for any loss or damage suffered by the respondent, the principal or the owner, respectively, or by any person claiming through or under the respondent, the principal or the owner; and
the respondent, the principal and the owner shall have no claim against the claimant for any loss or damage suffered as a result of the suspension, but the principal and the owner may recover liquidated damages or any other remedy from the respondent pursuant to any contract or under any law.
(3)
If the claimant, in exercising the right to suspend the carrying out of construction work or the supply of goods or services in accordance with subsection (1), 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; and
any such loss or expenses may be recovered by the claimant as a debt due from the respondent.
(4)
Where a claimant has suspended the carrying out of construction work or the supply of goods or services under a contract in accordance with subsection (1), he shall resume such work or supply within 3 days after being paid the adjudicated amount.
(5)
Where a claimant has suspended the carrying out of construction work or the supply of goods or services under a contract in accordance with subsection (1), and —
the principal, who is a licensed housing developer under the Housing Developers (Control and Licensing) Act (Cap. 130) with a project account opened under section 9 of that Act, has served a notice of payment under section 24(2)(a) on the claimant; and
the principal has not previously defaulted on any payment to the claimant under section 24 in relation to the same contract,the claimant shall resume such work or supply within 3 days after being served the notice of payment under section 24(2)(a).
(6)
The claimant shall be liable to pay for any loss or damage suffered by the respondent or the principal as a result of any failure to resume carrying out construction work or supplying goods or services, as the case may be, under subsection (4) or (5).
(7)
Any period of suspension under subsection (1) shall be disregarded in computing for the purposes of any contractual time limit the time taken, by the party exercising the right of suspension or by a third party (other than the respondent), to complete any construction work or the supply of any goods or services directly or indirectly affected by the exercise of the right of suspension.
(8)
Where the contractual time limit referred to in subsection (7) is set by reference to a date rather than a period, the date shall be adjusted accordingly.