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When is non-payment terminal?

By: Language: English Series: Construction News ; (6928) 4 August 2005, 26(1)Publication details: 2005Subject(s): Summary: Discusses the issue of missed or late payments. Failure to pay by a client can be considered a breach of contract under the Housing Grants, Construction and Regeneration Act 1996, leading to suspension of work by the contractor. However, if a contract is outside the Act, a contractor may only stop work if the client has committed a repudiatory breach of the contract. Refers to the case, "Tombs v Wilson Connolly", where non-payment was not held to be a breach of contract and consequently the contractor did not have the right to suspend work.

Discusses the issue of missed or late payments. Failure to pay by a client can be considered a breach of contract under the Housing Grants, Construction and Regeneration Act 1996, leading to suspension of work by the contractor. However, if a contract is outside the Act, a contractor may only stop work if the client has committed a repudiatory breach of the contract. Refers to the case, "Tombs v Wilson Connolly", where non-payment was not held to be a breach of contract and consequently the contractor did not have the right to suspend work.