When Can You Suspend Performance Under A Contract?

Article Summary

You can suspend performance where your contract permits it, legislation authorises it, or dependent obligations legally justify withholding the particular performance. An unpaid invoice alone does not automatically allow you to stop work. A right to terminate for serious breach also does not automatically create a right to suspend. Unauthorised suspension may itself constitute breach or repudiation.

For qualifying Queensland construction contracts, statutory suspension requires an unpaid amount recognised by the legislation, a compliant written notice and at least two business days after notice. The right continues for three business days after the relevant payment. Coverage exclusions, including certain resident-owner contracts, must be checked. Before stopping work, establish the legal basis, follow the notice procedure, and identify when performance must resume.