Can you stop work for non-payment?
Sometimes. The contract and the security of payment law may let you suspend work for non-payment, but only after the right notice. Stopping without it can put you in breach.
Why it is risky
Stopping work is a strong step. If you stop without the right to do so, the other side can say you broke the contract. That can lead to a claim against you.
Every Australian state and territory has its own security of payment law with its own rules on suspending work. The contract may add its own steps. Read both before you act.
What to check first
- Is the payment claim valid and was it served correctly?
- Did the other side give a payment schedule in time?
- Is the amount now overdue under the contract or the law?
- Does the law or the contract require a notice before you stop?
- How long must the notice run before you may suspend?
Queensland as an example
For example, Queensland has the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act). Under it a payment schedule is due within 15 business days of the claim. A missed or short payment can start the steps that lead to a right to suspend.
Keep a clear record of the claim, the reply, the notice and the date you stopped. Plan how you will restart when payment arrives.
Related answers
Questions
Can I take my people off site the same day?
Only if the contract and the law allow it. Most need a written notice and a notice period first.
Do I still have to pay my own subcontractors?
Your own contracts still apply. Check your obligations, and keep your own payment records in order.
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