Question

Advise when a contractor will not be in breach of a construction contract as defined under the Housing Grants Construction and Regeneration Act 1996, if he wants to stop work on a project due to non-payment.

Answer 1

* CONSTRUCTION CONTRACTS INDICATE THAT COTRACTOR WILL CARRY OUT THE PROGRESS OF THE WORK REGULARY. THERE IS NO COMMOMN LAW MADE TO SUSPEND THE PERFORMANCE OF THE WORK BUT BASED ON THE CONTRACTUAL PROVISIONS UNDER WHICH THE CONTRACTOR HAS RIGHTS TO SUSPEND WORK OR STOP THE WORK.

AS PER THE HOUSING GRANTS CONSTRUCTION AND REGENERATION ACT 1996 CERTAIN PROVISIONS HAVE INCLUDED WHICH ARE AS FALLOWS

* CONTRACTOR HAS RIGHT TO BE PAID IN STAGE OR PERIODIC PAYMENTS

*CONTRACTOR HAS RIGHT TO BE INFORMED ABOUT THE PENDING PAYMENTS

*CONTRACTOR HAS RIGHT TO SUSPEND THE WORK IF PAYMENTSS ARE NOT MADE.

CONTRACTOR IS ENTITLED TO BE PAID FOR THE COSTS THAT HAS OCCURED IN SUSPENSION OF THE WORK.

CONTRACTOR HAS TO GIVE 7 DAYS NOTICE WITH GIVING THE REASON TO STOP THE WORK AND HIS RIGHTS WILL BE CEASED IF THE PAYMENTS ARE MADE.

THERE IS ALSO PROVISION FOR EXTENSION OF THE TIME PERIOD OF CONSTRUCTION OF THE WORK IF THE WORK DELAY IS NOT DUE TO CONTRACTORS FAULT.

SOMETIMES DUE TO THE COMPLEXITY OF THE SITUATION IT NECESSARY FOR THE CONTRACTOR TO HAVE LEGAL ADVICE BEFORE PLANNING TO THE SUSPEND WORK PERFORMANCE SO THAT LATER ON IT SHOULD NOT LEAD TO CANCELLATION OF CONTRACTOR TEMPERARLY OR PERMANENTLY.