Vic Payment Schedule Served - Claimant Suspends Work

The claimant may exercise a statutory entitlement to suspend work if the claimant has received a valid Payment Schedule and/or a valid Performance Security Schedule but the Respondent fails to pay or release the scheduled amount by the due date.

Are there consequences for a Claimant suspending work?

The suspension of the carrying out of construction work or the supply of goods and services under a construction contract does not constitute a breach by the claimant of that contract.

Notwithstanding anything in the contract, the claimant is not liable for any loss or expense suffered by the respondent as a consequence of a suspension of work under the Act. If in response to a suspension the respondent removes any work from the claimant's contract, then the respondent is liable for any loss and expense suffered by the claimant as a result of the respondent's action.

How is work suspended?

The respondent must be provided with 3 business days written notice of the claimant's intention to suspend work.

The notice may take the form:

"[insert name of respondent] has failed to pay/release the amount due under the Building and Construction Industry Security of Payment Act 2002 (Vic) in respect of payment claim and/or performance security claim served on [insert date].

Take notice that pursuant to my right under section 29 of the Act, I will suspend work at the expiration of three business days unless, in the meantime, the amount due is paid/released in full."

What happens if the Respondent makes full payment?

Once the claimant has been paid the amount due, work must resume within 3 business days or a period of no less than 1 business day if provided by contract.

Payment for the loss and expense can be pursued through adjudication like any other due payments.

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