7(1)Despite that a payment bond is in effect with respect to a contract, when notified in writing by a subcontractor, a material supplier, a supplier or a worker that a contractor or subcontractor has not paid the subcontractor, supplier, material supplier or worker an amount owing for work, materials, goods or supplies in connection with the contract or subcontract, the Crown may withhold from the contractor the amount owing under the contract.

7(2)When an amount is withheld under subsection (1), the Crown shall immediately advise the contractor and, if appropriate, the subcontractor of the withholding and provide details of the claim.

7(3)After advising the contractor and, if appropriate, the subcontractor, if the Crown is satisfied that the amount claimed is owed by the contractor or subcontractor to the person making the claim, the Crown may pay to that person the amount owing to him or her by the contractor or subcontractor, as the case may be.

7(4)An amount paid by the Crown under subsection (3) discharges, to the extent of the payment, the following amounts with respect to the work, materials, goods or supplies in respect of which the payment is made:

7(5)When a claim is submitted under this section to the Crown against a subcontractor by a subcontractor, material supplier, supplier or worker and the Crown pays the claim, the contractor may