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Suspension

FIDIC / Legal Reference: FIDIC Red Book Clause 8.8 (Engineer-instructed) / Clause 16.1 (Contractor-initiated)

The temporary cessation of construction activities, either instructed by the Engineer or initiated by the contractor in response to the employer’s failure to pay. Suspension has significant financial and programme consequences and must be managed carefully to preserve the suspending party’s contractual rights.

What it means in practice

Engineer-instructed suspension under Clause 8.8 requires the contractor to protect, store, and secure the Works during the suspended period. The contractor is entitled to an EOT and additional costs. If the suspension lasts more than 84 days, the contractor may treat the suspended part as an Omission or give notice of termination.

Contractor-initiated suspension under Clause 16.1 is a powerful remedy for non-payment. After giving 21 days’ notice, the contractor may suspend work. The contractor is entitled to an EOT and additional cost for the suspension period.

Where disputes arise

Wrongful suspension by the contractor — where the right to suspend did not exist — constitutes a repudiatory breach of contract. The line between a legitimate exercise of the suspension right and a wrongful repudiation requires careful legal analysis.

UAE Context

Contractor suspension for non-payment is a drastic step in UAE construction — it damages the commercial relationship and may lead to termination. The right should only be exercised after careful legal advice.

Related terms

Suspension decisions and their consequences require specialist claims and legal advice. e-Basel advises contractors and employers on suspension rights and remedies under FIDIC contracts.

Construction Claims Consultant UAE →

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