Prompt Payment and Construction Lien Act s. 2

2 Substantial performance

Current to 2025-04-01 · Official PDF

For the purposes of this Act, a contract or a subcontract is
substantially performed
(a) when the work under a co ntract or a subcontract or a
substantial part of it is ready for use or is being used for
the purpose intended, and
(b) when the work to be done under the contract or
subcontract is capable of completion or correction at a
cost of not more than
(i) 3% of the first $500 000 of the contract or
subcontract price,
(ii) 2% of the next $500 000 of the contract or
subcontract price, and
(iii) 1% of the balance of the contract or subcontract
price.
RSA 1980 cB-12 s2;1985 c14 s3