Division 3 - Claimant's right to suspend construction work

27     Claimant may suspend work

(1)   A claimant may suspend the carrying out of construction work (or the supply of related goods and services) under a construction contract if at least 2 business days have passed since the claimant has caused notice of intention to do so to be given to the respondent under section 15, 16 or 24.

(2)   The right conferred by subsection (1) exists until the end of the period of 3 business days immediately following the date on which the claimant receives payment for the amount that is payable by the respondent under section 15 (1), 16 (1) or 23 (2).

(2A)     If the claimant, in exercising the right to suspend the carrying out of construction work or the supply of related goods and services, incurs any loss or expenses as a result of the removal by the respondent from the contract of any part of the work or supply, the respondent is liable to pay the claimant the amount of any such loss or expenses.

(3)   A claimant who suspends construction work (or the supply of related goods and services) in accordance with the right conferred by subsection (1) is not liable for any loss or damage suffered by the respondent, or by any person claiming through the respondent, as a consequence of the claimant not carrying out that work (or not supplying those goods and services) during the period of suspension.

Parkview Constructions Pty Ltd v Sydney Civil Excavations Pty Ltd &anor [2009] NSWSC 61 (19 February 2009): Brereton J
KEY ISSUES: Adjudication under (NSW) Building and Construction Industry Security of Payment Act 1999 claim that Adjudicator’s decision invalid that adjudicator did not evaluate claim under s 27(2A) whether under guise of s 27(2A) lost profit on termination can be recovered whether adjudication application advanced a matter outside the scope or ambit of the payment claim whether adjudicator failed properly to evaluate s 27(2A) claim where one party does not make a contention as to quantum to adjudicator

Beckhaus v Brewarrina No 2 [2004] NSWSC 1160 (7 December 2004): Master Macready
KEY ISSUES: whether there has been a payment which causes suspension under s.27 to cease

Brewarrina Shire Council v Beckhaus Civil Pty Ltd 1 Or [2005] NSWCA 248 (4 August 2005): Hodgson JA, Ipp JA, McColl JA
KEY ISSUES: suspension of the work to be carried out under a contract - no suspension if payment under s 15(1)(b) of the Act is conditional upon the payment of a bank guarantee

Beckhaus v Brewarrina No 2 [2004] NSWSC 1160 (7 December 2004) : Master Macready
KEY ISSUES: whether defendant entitled to liquidated damages under the contract in circumstances where plaintiff did not achieve practical completion – whether leave should be allowed for claim for liquidated damages – whether there was indemnity under s27 of the Act against liquidated damages claim