Under the Building and Construction Industry Security of Payment Act 1999 No. 46:
A progress payment to be made to a subcontractor under a construction contract becomes due and payable on:
The maximum period for a subcontractor to get paid is 30 business days once a payment claim has been made. However, head contractors are required to pay earlier than the 30 business days when stated in the contract.
If your contractor refuses to pay you as subcontractor in your building project, you can do the following:
How long have you been waiting for payment? Get expert advice from a construction lawyer now. You have the right to get paid!
When things have go wrong, you should use the dispute resolution clause stated in your existing subcontractor agreement contract.
Adjudication is a procedure for resolving disputes without resorting to lengthy and expensive court procedure. You have the right to apply for this as this process is an easy way to get paid easier with the help of an adjudicator.
After obtaining an adjudication certificate, you may also opt to obtain a garnishee order. A garnishee order for debts is a court procedure that allows you to recover the adjudicated amount from the other parties’ bank or any third-person owing money to the other party (garnishee).
This is a much faster process to claim the adjudicated amount as you will only need to file a notice of motion for garnishee order for debt before a court with competent jurisdiction.
Another way to deal with the other party after getting an adjudication certificate is through sending a payment withholding request.
You can serve a payment withholding request on a principal contractor. After you applied for adjudication, you should:
If the situation is still unresolved by adjudication, you can commence legal proceedings to the appropriate tribunal or court which involves court hearings. But to warn you, this is a long and costly process.
Call John Dela Cruz of Contracts Specialists now! He will help you get paid. John will help defend and enforce your legal rights. He can assist you with your payment claim preparation and adjudication application under the Security of Payments Act and other relevant laws.
With his extensive knowledge and experience dealing with construction matters for more than 10 years, you can be confident you are getting the right advice.
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.