Sometimes, getting your payment after you’ve done your part for a construction project can be such a hassle. Some homeowners can definitely drive you nuts. Ideally, you’d want to get your money in a snap, but since this is not always the case, you better know your legal options now.
Contracts Specialist can help you stand up for yourself and claim what is rightfully yours! Get the right legal advice now.
Debt recovery, or debt collection, is a process of collecting the payment that the project owner (the debtor) owes to the contractor (the creditor). When disputes arise in construction work, contractors experience a setback. This can result in slow payment, partial payment, and even non-payment.
Here’s the step-by-step guide to recovering money owed to you.
Quick Tip: Contracts Specialist can help you with your legal situation. We have been helping our clients with Debt Recovery for more than 10 years.
A statement of claim starts a court case to get the money or goods the debtor owes to the creditor. The SoC must be filed with the proper court division.
You may enclose a copy of the Statement of Claim with the Letter of Demand. This will give the impression that you are serious about taking legal action against the debtor.
Note: The size of the debt will determine which court will hear the claim.
The debtor has 28 days from service of the Statement of Claim to file a defence. If the debtor DOES NOT FILE a defence, you may apply for default judgment.
Note: A default judgment is a judgment made against a debtor without the matter going to a court hearing.
Pre Trial Review
The pre-trial review is an opportunity for you and the debtor to settle the case. Note that the situation will proceed to a hearing if the matter is unable to be settled at the Pre Trial Review.
Here are the options for Enforcement of legal action when the creditor is successful:
Your hard work will pay off. The purpose of the Security of Payment Act is to ensure that tradespeople in the construction industry will get the right payment for the goods and services they have delivered. These are your legal rights:
Get expert legal advice from our principal lawyer, John Dela Cruz. With his extensive knowledge and significant experience dealing with construction law matters, you can be confident that you are in the good hands.
Ready to get the right legal advice now?
Contracts Specialist is a Sydney-based construction law firm that deals with Building Disputes, Construction Contracts, Debt Recovery, and Security of Payment. With Contracts Specialist, you are ensured that you are in good hands.