112 Right to suspend performance for non-payment.E+W+S
(1)[F1Where the requirement in section 111(1) applies in relation to any sum but is not complied with,], the person to whom the sum is due has the right (without prejudice to any other right or remedy) to suspend performance of [F2any or all of] his obligations under the contract to the party by whom payment ought to have been made (“the party in default”).
(2)The right may not be exercised without first giving to the party in default at least seven days’ notice of intention to suspend performance, stating the ground or grounds on which it is intended to suspend performance.
(3)The right to suspend performance ceases when the party in default makes payment in full of [F3the sum referred to in subsection (1)].
[F4(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)Any period during which performance is suspended in pursuance of [F5, or in consequence of the exercise of,] the right conferred by this section shall be disregarded in computing for the purposes of any contractual time limit the time taken, by the party exercising the right or by a third party, to complete any work directly or indirectly affected by the exercise of the right.
Where the contractual time limit is set by reference to a date rather than a period, the date shall be adjusted accordingly.
Textual Amendments
F1Words in s. 112(1) substituted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 144(2)(a), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2, S.S.I. 2011/291, art. 2
F2Words in s. 112(1) inserted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 145(2), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2; S.I. 2011/1597, arts. 2, 3, S.S.I. 2011/291, art. 2
F3Words in s. 112(3) substituted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 144(2)(b), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2; S.I. 2011/1597, arts. 2, 3, S.S.I. 2011/291, art. 2
F4S. 112(3A) inserted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 145(3), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2; S.I. 2011/1597, arts. 2, 3, S.S.I. 2011/291, art. 2
F5Words in s. 112(4) inserted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 145(4), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2; S.I. 2011/1597, arts. 2, 3, S.S.I. 2011/291, art. 2
Modifications etc. (not altering text)
C1Pt. 2 excluded (E.W.) (5.5.2023) by The Construction Contracts (Exclusion) (Wales) Order 2023 (S.I. 2023/475), arts. 1(3), 3
Commencement Information
I1S. 112 wholly in force; s. 112 not in force at Royal Assent see s. 150; s. 112 in force at 1.5.1998 by (E.W.) S.I. 1998/650, art. 2 and (S.) S.I. 1998/894, art. 2