Litigation & Insolvency Partner, Tim Crumpton, looks at the
importance of the importance of having the terms of a construction
contract clearly set out and agreed between the parties, preferably
in writing
The security of payments legislation in the various States and
Territories is designed to ensure those carrying out construction
work receive progress payments as quickly as possible for goods and
services they provide. The legislation achieves that aim by having
an adjudication process within a short timeframe, thereby avoiding
lengthy Court processes.
However, the legislation does not extinguish a party's other
legal rights, including the right to recover or 'claw back'
part or all of a progress claim. Indeed, the legislation
specifically provides for the final rights and liabilities of
parties to be reserved for determination in subsequent court
proceedings.
