| Suspension usually occurs on a construction project | | | | Works, the Contractor may give notice of |
| when an employer requires a contractor to | | | | termination under Sub-Clause 16.2 [Termination by |
| temporarily stop work on all or a portion of the | | | | Contractor]. It will be sometimes treated as an |
| project. Contractually, the contractor shall suspend | | | | abandonment of the contract by the employer. |
| the progress on the engineer’s written notice if | | | | |
| it is only provided for in the contract, due to | | | | After the permission or instruction to |
| contractor’s default, due to climatic conditions, | | | | proceed is given, the Contractor and the |
| on safety reasons, necessary for proper execution | | | | Engineer shall jointly examine the Works and the |
| of work or in excepted risks. A mandatory | | | | Plant and Materials affected by the suspension. The |
| requirement is cast on the contractor to give a | | | | Contractor shall make good any deterioration or |
| written notice of his intension to claim for any | | | | defect in or loss of the Works or Plant or Materials, |
| additional cost or time within a specified period from | | | | which has occurred during the suspension. |
| the date of receiving the engineer’s order to | | | | |
| suspend the work. This clause specifically permits the | | | | Suspension claims often require a schedule delay |
| engineer to authorize extension of time or payment | | | | analysis to evaluate the impact to the project’s |
| of extra cost, whose decision is final and binding. | | | | critical path. A suspension claim will consist of cost |
| The cost shall be borne by the employer unless such | | | | calculations with regard to protection and securing |
| suspension is otherwise provided for in the contract, | | | | works, idling labor, plant etc, loss of managerial inputs |
| necessary for the proper execution of the works, by | | | | and any other incidental costs such as costs on |
| reason of weather conditions that affecting quality or | | | | demobilization/remobilization costs and other actual |
| safety, buy some default on the part of the | | | | costs incurred due to the suspension. In addition, if |
| contractor or necessary for safety of works. | | | | the employer’s actions do not allow the work to |
| | | | | proceed but the suspension clause has not been |
| The typical clause ‘suspension lasting more than | | | | invoked, the contractor may claim for constructive |
| 90 days’ is to deal with suspension in one-go or | | | | suspension. |
| part by part in consecutive periods, giving the | | | | |
| contractor the right to determine the contract in two | | | | A party, who wishes to exercise the right to |
| ways. If the suspension under Sub-Clause 8.8 | | | | suspend performance, runs the risk that their |
| [Suspension of Work] has continued for more than | | | | suspension will be regarded a failure to carry out the |
| 84 days (in FIDIC), the Contractor may request the | | | | works regularly and diligently and may be treated as |
| Engineer’s permission to proceed. If the Engineer | | | | a repudiation of the contract, if in the particular |
| does not give permission within 28 days after being | | | | circumstances no such right actually exists. The right |
| requested to do so, the Contractor may, by giving | | | | to suspend performance for non-payment is |
| notice to the Engineer, treat the suspension as an | | | | statutory but the parties are free to agree how long |
| omission under Clause 13 [Variations and | | | | the period is between the date on which a sum |
| Adjustments] of the affected part of the Works. If | | | | becomes due and the final date for payment of that |
| the suspension affects the whole of the | | | | sum, then the period will vary between contracts. |