Are you a subcontractor having trouble getting paid? You are not alone. There are many builders and tradies in the industry who are constantly struggling with the same situation.
A payment withholding request can be a big help for your situation after you have applied for adjudication. Consult with Contracts Specialist and get a better understanding of where you stand legally.
Under the Act, a claimant can serve a request to withhold payment. The principal contractor retains sufficient money to cover a claim out of money that is or becomes payable by the principal contractor to the respondent (the person on whom a payment claim is served).
The Act defines the principal contractor as…
‘A person by whom money is or becomes payable to the respondent for work carried out or materials supplied by the respondent to the person as part of or incidental to the work or materials that the respondent engaged the claimant to carry out or supply’.
In short, he is the one who engaged the respondent to do work.
The two documents must be served on the principal contractor. As the adjudication progresses, the claimant must also send a copy of the determination within 5 business days.
A principal contractor must act on any payment withholding requests that are received. He must retain unpaid money to the value of the adjudication application until:
A subcontractor must:
A construction attorney can help you defend and enforce your legal rights. He can assist you with your adjudication application and serving your payment withholding requests.
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. His interests will always be aligned with yours.
Consult with a construction law expert who can explain things to you in a way you will fully understand. Leave the legal terms to us. We will help you understand your rights.
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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.