Can I Suspend Work if I Haven’t Been Paid?

Yes. Under Section 112 of the Construction Act, if a payment has become due and hasn’t been received by its final date for payment, you have a statutory right to suspend performance of your contractual obligations in all or part of them. 

In plain terms if you haven’t been paid what you’re owed, you can stop work until you are. 

What the Right Gives You 

The right to suspend is a meaningful protection, not a blunt instrument. While suspended, you cannot be treated as being in breach of contract. The contract period is extended by the length of the suspension, and you are entitled to recover the costs of suspending and restarting work. 

These protections were strengthened in 2011 when the Act was amended reflecting Parliament’s recognition of how damaging non-payment is across the construction supply chain. 

How It Works in Practice 

The right doesn’t apply automatically. There is a statutory notice process that must be followed before suspension can begin, and that notice must meet specific legal requirements. 

Getting this wrong, whether that’s the amount claimed, how the notice is served on, or how it’s timed, can turn what should be a lawful suspension into a breach of contract on your part. The consequences of that can be significant, including claims for damages or termination. 

Done correctly, however, suspension is one of the most effective self-help remedies available to contractors and subcontractors. In practice, the formal notification of an intention to suspend very often prompts payment before suspension is even reached. When a project’s programme is under threat, payers tend to move quickly. 

When to Consider It 

Suspension works best as part of a considered approach rather than a first reaction. It can be particularly powerful when used alongside adjudication. The combination of work stopping and a formal decision being sought tends to concentrate minds. 

If you’re in a situation where payment is overdue, it’s worth taking advice before you act. The process is straightforward when followed correctly, but the margin for error is small and the stakes are real. 

Breadcrumb Group advises subcontractors and contractors on payment disputes, adjudication, and suspension rights. If you’re not getting paid and want to understand your options, get in touch at Adjudicate or The Contract Coach — we’re happy to have a no-obligation conversation.