WA: Payment Schedule Served - Claimant Suspends Work
There are 4 circumstances in which a claimant may exercise a statutory entitlement to suspend work.
- The claimant has received a valid payment schedule but the respondent fails to pay the scheduled amount by the due date for payment; or
- A payment schedule was not served within time and the respondent fails to pay the whole or any part of the claimed amount by the due date for payment; or
- The adjudicated amount is not paid within 5 business days after an adjudication determination is received by the respondent, or later date if determined by the adjudicator; or
- The respondent fails to pay any retention money relating to the progress payment into a retention money trust account as required by Part 4 of the Act.
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, the respondent is liable to pay for any consequent loss and expense suffered by the claimant.
The respondent must be provided with 2 business days written notice of the claimant's intention to suspend work. For example, if the due date for payment is Monday and the written notice is provided on Tuesday, work may be suspended from Friday of the same week.
The notice may take the form:
"This is a notice of suspension of work or supply given under the Building and Construction Industry (Security of Payment) Act 2021 (WA). Take notice that pursuant to my rights under Division 7 of the Act, I will suspend work at the expiration of two business days unless, in the meantime, the amount due is paid in full ".
Once the claimant has been paid the amount due, work must resume within 3 business days.
Payment for any loss and expense can be pursued through adjudication like any other due payments.
Please move to the next step on the WA flowchart being "Claimant has 20 business days to prepare & serve the Adjudication Application on Adjudicate Today. The Application must be served on the Respondent within 1 further business day from Adjudicator's receipt. However if an Adjudication Notice [s28(2)] was served, the time is 20 business days after expiry of the 5 business days given by that Notice".
