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Part 8Construction contracts

145Suspension of performance for non-payment

(1)In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), section 112 (right to suspend performance for non-payment) is amended as follows.

(2)In subsection (1), after “performance of” insert “any or all of”.

(3)After subsection (3) insert—

(3A)Where the right conferred by this section is exercised, the party in default shall be liable to pay to the party exercising the right a reasonable amount in respect of costs and expenses reasonably incurred by that party as a result of the exercise of the right.

(4)In subsection (4), after “pursuance of” insert “, or in consequence of the exercise of,”.