Non‑compliance by principal, contractor may suspend its obligations
42 Non‑compliance by principal, contractor may suspend its obligations
If a determination requires the principal to pay the contractor an amount and the principal does not pay in accordance with the determination, the contractor may give the principal notice of the contractor’s intention to suspend the performance of its obligations.
The notice must —
be in writing; and
be prepared in accordance with, and contain the information prescribed by, the regulations; and
state the date on which the contractor intends to suspend the performance of its obligations; and
be given to the principal at least 3 business days before that date.
If on the date stated under subsection (2)(c) in the notice the principal has not paid the contractor the amount in accordance with the determination, the contractor may suspend the performance of its obligations until no longer than 3 business days after the date on which the amount is paid.
Subsection (3) does not prevent the contractor from at any time resuming the performance of its obligations.
A contractor that suspends the performance of its obligations in accordance with this section —
is not liable for any loss or damage suffered by the principal or by any person claiming through the principal; and
retains its rights under the contract, including any right to terminate the contract.
[Section 42 amended: No. 55 of 2016 s. 16.]
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