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ARTICLE · 23 DECEMBER 2017

Civil contractors legal guide: Payment

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This guide will focus on lump sum contracts, but you should seek advice on the best payment regime for your business.

AustraliaReal Estate and Construction
Murray Thornhill
Murray Thornhill
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Basic principle: the right to be paid what your work is worth and lump sum contract

A contractor is entitled to be paid for their work:

  • where the principal agrees to pay a certain sum of money to the contractor for a specified scope of work; or
  • where a contractor does work on behalf of a principal and the principal freely accepts that work (in the sense that they have an opportunity to reject it but do not reject it).

Some of the most common payment regimes for civil works or construction projects include lump sum contracts, schedules of rates, cost-plus or a combination of these.

In this guide we will focus on lump sum contracts. You should seek advice on the best payment regime for your business.

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