The Construction Contracts Co.
Glossary
Glossary / Suspension of works

Suspension of works

Suspension of works is the statutory right to stop work for non-payment under security of payment legislation - exercised correctly it is not a breach of contract, and the builder cannot lawfully terminate over it.

The right attaches to amounts due under the Act's machinery (an unscheduled claim after the deadline, an unpaid scheduled or adjudicated amount), and requires written notice under the Act with a statutory period before tools go down. A disputed invoice is not yet a due amount; a phone call is not notice.

Why it matters to subbies

Most of the time the notice alone releases the payment - a crew off site is the one thing the program cannot absorb. Verify your state's section and notice period before serving.

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General information for Australian subcontractors, not legal advice - contract drafting and state legislation vary and change; your document and your state's Act govern. Written by Mat Kennedy at The Construction Contracts Co.