(Insert Company Logo here)

NOTICE OF INTENTION TO SUSPEND WORK

UNDER THE CONSTRUCTION CONTRACTS ACT 2002

Date of this Notice:

To: / ABC Ltd
PO Box 1111
Auckland
For: The Directors
From: / ABC Ltd
PO Box 1111
Auckland
For: The Directors

THIS NOTICE IS ISSUED IN RELATION TO THE FOLLOWING CONSTRUCTION CONTRACT:

Project:

Location of Project:

Description of construction work:

This is a notice to the payer under section 23(2)(b) of the Construction Contracts Act 2002 of the payee’s intention to suspend the carrying out of construction work on the above project for failure to provide a payment schedule and pay the claimed amount on or before the due date for the payment to whichthe following payment claim relates:

Date of payment claim
Payment claim no.
Date of service of payment claim
Claim period
Claimed Amount
Due date for payment

You have failed to provide a payment schedule in response to the above payment claim within the time required by section 22(b) of the Construction Contracts Act 2002 (the Act) and you have failed to pay the whole of the claimed amount on or before the due date for payment.

If payment of the claimed amount is not made within 5 working days of the date of service of this notice on you, I/we will exercise the right under sections 72(1)(a)(i) & 72(1)(c) of the Act to suspend the carrying out of construction work under the above construction contract.

If I/we exercise the right to suspend work under the contract I am/we are:

  • not in breach of the construction contract; and,
  • not liable for any loss or damage suffered by you or by any person claiming through you; and,
  • entitled to an extension of time to complete the construction contract; and,
  • entitled to all of our rights under the contract including any right to terminate the contract; and,
  • entitled to lift the suspension, even if the amount has not been paid; and,
  • entitled to any contractual right to recover (whether in and adjudication or otherwise) any costs incurred as a consequence of the extension of time

Accordingly, if I/we exercise the right to suspend work under the contract you are not entitled to engage any other person to continue or complete the contract works.

This notice will cease to be of effect and will be revoked automatically when the claimed amount is paid in full.

Name
Position/Role
Signature
Date