Building and Construction Industry Security of Payment Act 2004 · 2020 Revised Edition · Part 5 · Measures to Enforce Payment of Adjudicated Amount
26. Right to suspend work or supply
Feedback & supportSubject 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 —
claimant
“claimant” means a person who is or claims to be entitled to a progress payment under section 5;
the claimant has served on the respondent the notice mentioned 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.
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 (as the case may be) or by any person claiming through or under the respondent, the principal or the owner; and
the respondent, the principal and the owner 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.
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 —
construction work
“construction work” means —(a)the construction, alteration, repair, restoration, maintenance, extension, demolition or dismantling of buildings or structures (whether permanent or not) that form, or are to form, part of the land;(b)the construction, alteration, repair, restoration, maintenance, extension, demolition or dismantling of any works that form, or are to form, part of the land, including walls, roadworks, powerlines, telecommunication apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for the purpose of land drainage, coast protection or defence;(c)the installation in any building, structure or works of fittings that form, or are to form, part of the land, including systems of heating, lighting, air conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, and security or communications systems;(d)any operation which forms an integral part of, is preparatory to, or is for rendering complete, works of the kind mentioned in paragraph (a), (b) or (c), including —(i)land reclamation;(ii)site clearance, earth moving, excavation, tunnelling and boring;(iii)the laying of foundations;(iv)the erection, maintenance or dismantling of scaffolding;(v)the prefabrication of components to form part of any building, structure or works, whether carried out at or on the construction site or elsewhere; and(vi)site restoration, landscaping and the provision of roadways and other access works;(e)the external or internal cleaning of buildings, structures or works, so far as it is carried out in the course of their construction, alteration, repair, restoration, maintenance or extension; or(f)the painting or decorating of the external or internal surfaces of any building, structure or works;
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.
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), the claimant must resume such work or supply within 3 days after being paid the adjudicated amount.
goods
“goods” means —(a)materials or components to form part of any building, structure or works arising from construction work; or(b)plant or materials (whether supplied by sale, hire or otherwise) for use in connection with the carrying out of construction work;
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 —
services
“services” means —(a)the conduct of feasibility studies, planning services, the submission of applications or other documents to any relevant authority, site supervision services, professional engineering services, or architectural, design, surveying or quantity surveying services, in relation to construction work;(b)project management services in relation to construction work;(c)building, engineering, exterior or interior decoration or landscape advisory services in relation to construction work; or(d)the provision of labour to carry out construction work.
the principal, who is a licensed housing developer under the Housing Developers (Control and Licensing) Act 1965 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 must resume such work or supply within 3 days after being served the notice of payment under section 24(2)(a).
The claimant is 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).
respondent
“respondent” means a person who is or may be liable to make a progress payment under a contract to a claimant;
Any period of suspension under subsection (1) must 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.
Where the contractual time limit mentioned in subsection (7) is set by reference to a date rather than a period, the date must be adjusted accordingly.