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The Construction Contracts Co.
Western Australia Subcontract Guides
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Western Australia · suspension

Not being paid in Western Australia: when can you lawfully stop work?

Yes. The Building and Construction Industry (Security of Payment) Act 2021 (WA) gives a subcontractor whose due payment goes unpaid a lawful right to suspend work, exercised after the required written notice. Done in sequence, suspension is protected: it isn't a breach and the builder can't lawfully terminate over it. Done out of sequence, it's repudiation, and it hands the builder the termination clause.

Western Australia's regime, in 90 seconds

The sequence is the whole thing

The protected path: a valid payment claim, the due date passing unpaid (or an unpaid adjudicated amount), then the Act's written notice of intention to suspend, and only then the tools go down. Each step in writing, each one dated.

What breaks it: suspending over a disputed invoice before the statutory sequence has run, on a phone call, or for amounts not yet due. That's not suspension under the Act. It's refusal to perform, and it converts your payment dispute into the builder's termination case.

What suspension actually gets you

Leverage, mostly, and protection while you use it. A crew lawfully off site is the one consequence a builder's program can't absorb, which is why the statutory suspension notice so often shakes payment loose before the suspension ever starts.

Suspension pairs with adjudication rather than replacing it: the notice applies the pressure now; the application converts the claim into an enforceable determination. Running both at once is the standard play for a serious unpaid amount.

Before you're here again

The contracts we analyse almost universally give the builder set-off and suspension powers while giving the subcontractor none beyond the Act. You can't negotiate the Act away (no contract can), but you can negotiate the contract's own suspension and set-off clauses toward symmetry before you sign.

From the Australian Subcontract Index, live data
97%
allow set-off without notice · 75 of 77
From 90 subcontracts analysed to date · see the full Index
Where does your contract sit?

Adjudicate Pro: what an adjudicator would likely award under Western Australia law, and whether to apply.

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Frequently asked questions

Can the builder terminate me for suspending work?

Not lawfully, if you suspended under the Act after proper notice for a due amount: statutory suspension is protected. The danger is sequence errors: suspend before the notice period runs and the protection never attaches.

Do I keep getting paid for the suspension period?

The Act's protection covers the suspension itself; recovering delay costs for the suspension period depends on your contract's terms. Document everything (crew, plant, dates) from the first day.

Screwed Down by Mat Kennedy
Go deeper · from the book
Chapter 19 of Screwed Down: Down tools, legally
What it costs you in dollars, the clause to ask for, and what to do on Monday.
Read the chapter summary →Get the book on Amazon
Keep reading
Can I suspend work if I'm not being paid? →How does adjudication actually work? →Can the builder back-charge me or set off money without notice? →How long can a builder take to pay a subcontractor in Western Australia? →Time bars in Western Australia subcontracts: what you lose, and when →Retention on Western Australia subcontracts: what's normal, and what to watch →How adjudication works in Western Australia →Variations on Western Australia subcontracts: getting changed work paid →

General information for Australian subcontractors, not legal advice. Statutory deadlines change and have exceptions. Verify against the Act and current guidance, or with a construction lawyer, before acting on them.