Wrongfully Suspending Performance Of A Construction Contract - When A Contractor Will Not Be Liable For Repudiatory Breach

Non-payment of contractors by their employers can be frustrating. Therefore, several standard forms of contract allow contractors suspend the performance of their obligations in the contract until employers pay. However, this right is subject to the terms of the contract and contractors may find themselves in a situation where their contracts do not provide any right to suspend over non-payment.

While some contractors try to maintain the terms of the contract, others suspend the performance of their obligations under the contract with no hesitation. However, where contractors suspend the contract when they have no right to do so, it is important for these contractors to consider if they will be liable for repudiatory breach of the contract for 'wrongfully' suspending the performance of their obligations under the contract.