Full payment made

Carry on working

WATCH NOW Rudi has made an exclusive video for SELECT Members that gives tips on suspension for non-payment. Watch it now at

Payment remains outstanding

Suspend work and leave site

Full payment made

Return to site

Claim reasonable sum for costs and expenses

Payment remains outstanding

Suspend work and leave site

Top tips Finally, here’s my list of four things to remember: ●Suspension is generally a last resort when due payments are becoming later and later – this could be the result of impending insolvency on your client’s part ●Always issue the notice – just walking off site without doing so is a breach of contract ●If you have to suspend, make sure that you recover your reasonable costs ●When issuing a notice of suspension, you’ll have to wait until the fi nal date for payment has passed.


GOT A QUESTION FOR RUDI? If you have a query that you would like Rudi to help with,

please email CABLEtalk APRIL/MAY 2021 33

Payment still not made


debt recovery options

T is diagram shows the steps you

should take if you haven’t been paid – and when you should take them

EXAMPLE LETTER - NOTICE OF SUSPENSION After numerous phone calls to your accounts department, you have failed to discharge the outstanding payment of [£AMOUNT] for work carried out last month. T is sum was due on [DATE] in accordance with the above contract. In the circumstances we have no alternative but to exercise our right under

Section 112, Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) to suspend further performance of our contractual obligations. T is email therefore constitutes the seven days’ notice of intention to suspend

performance required by Section 112 (2) until payment in the sum of [£AMOUNT] is discharged in full. On [DATE] I will instruct my employees to cease further work at the [NAME OF

SITE, BUILDING OR PROJECT] and remove all equipment, materials and goods belonging to my company unless, in the meantime, payment has been made. I should add that Section 112 makes clear that any period of suspension is ignored

for the purpose of calculating the contract completion date. Furthermore, I have a right to a reasonable sum in respect of costs and expenses that my company has incurred in taking this action. Such costs and expenses will include the cost of demobilisation and remobilisation. I trust that suspension will not be necessary and look forward to receipt of the outstanding sum. Regards etc,

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