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Can I suspend work for non-payment in New Zealand?

Yes. Under the Construction Contracts Act you can suspend work if an amount due is not paid, you serve a notice of intention to suspend under the Act, and the amount is still unpaid 5 working days after that notice.

When the right applies (section 24A)

  1. 01A claimed amount is not paid in full by its due date and no payment schedule was given, or
  2. 02A scheduled amount is not paid in full by its due date, or
  3. 03The payer has not complied with an adjudicator's determination to pay you by a set date (s 24A(1)(a)).

The steps

  1. 01Serve a notice of intention to suspend. It must state the grounds and that it is given under the Act (ss 23(3), 24(3)).
  2. 02Wait 5 working days after the date of the notice. Working days exclude 24 December to 5 January (s 5).
  3. 03If the amount is still unpaid, you may suspend work (s 24A(1)(c)).

What protection you get

  1. 01You are not in breach of the contract and not liable for any loss or damage the payer suffers (s 24A(2)(a)-(b)).
  2. 02You are entitled to an extension of time, but the Act alone does not give you the costs of that extension (s 24A(2)(c)).
  3. 03You keep your contract rights, including any right to terminate, and you can lift the suspension at any time (s 24A(2)(d)-(e)).

From practice

Get the paperwork right before you down tools. Check the notice states the grounds and that it is given under the Act, count the 5 working days from its date, and keep a record of how and when you served it.

Sources

Checked against the Act on 30 October 2026. General information only, not legal advice. Your contract may set different times, so check it.

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How we work

  1. Review

    We first secure any notice deadlines about to expire, then review your documents: the contract, the BOQ and the project records.

  2. Assess

    We test the assumptions, map entitlements, risks and dependencies, and put honest ranges on cost and time.

  3. Advise

    You get clear options and a recommendation: what changed, why it matters, what to decide and by when.

  4. Deliver

    We prepare what is needed and keep it on track, from notices, claims and programmes to reporting, procurement and AI workflows. That can be a single task or an ongoing role for the whole contract, such as Independent Certifier, contract administrator or financial management of claims and invoicing.

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