The interesting inclusion to the section is the words, in full. There is therefore a clear statutory requirement on a party to a Construction Contract to make payment in full as opposed to the current trend to make interim payments on account. This introduces an interesting reality to the manner in which payments in Construction Contracts are to be certified in future.
In order to suspend work, notice must be issued in writing to the other party to the Contract and it must specify the grounds on which it is intended to suspend work. It must be delivered between the day after the day the payment was due and at least 7 days before the suspension is due to begin.
In order to cease a suspension, a party can make payment of the amount due or interestingly the suspension must stop if a decision is made to refer a dispute to Adjudication. In order to protect the contractor seeking payment, a justified suspension cannot be used against the contractor in respect to programme delay and disruption calculations. Contractors must however be careful in respect to suspensions, as an unjustified suspension will not protect a Contractor from claims in respect to loss and expenses as a result of delay to programme.
Contractors must refer to the payment claim date schedule of the contract (or the Schedule to the Act should same apply), in order to confirm the day in which the amount is due.
By way of example if the Schedule to the Act was the basis of payment claim date under the Contract the following would apply.
Project Commencement Date Day 0
Payment Claim 1 Date Day 30
Latest Date for issuing a Payment Claim Notice (Valuation in old terminology) Day 35
Latest Date for issuing a Payment Claim response Day 51
Payment Due Date Day 60
Earliest Date that works can be suspended (subject to correct notification) Day 68
Keith Kelliher is an Accredited Adjudicator, who has completed the Diploma in Adjudication in University College Dublin, specifically on the Construction Contracts Act 2013, and has represented Main Contractors and Sub-Contractors in payment disputes for over 15 years in the Irish construction industry. Contact Keith at email@example.com for any assistance with the requirements of the ACT.