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ARTICLE · 03 JULY 2007

Construction Update - Can Security Of Payment Legislation Operate Down The Contractual Chain?

DLA Piper Australia
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A question that is frequently asked is whether the "Building and Construction Industry Security of Payment Act" 1999 (NSW) (the Act) or the "Building and Construction Industry Payments Act" 2004 (Qld) can operate down the contractual chain.

AustraliaReal Estate and Construction
Andrew Kelly
Andrew Kelly
Justin O’Callaghan
Justin O’Callaghan

A question that is frequently asked is whether the Building and Construction Industry Security of Payment Act 1999 (NSW) (the Act) or the Building and Construction Industry Payments Act 2004 (Qld) can operate down the contractual chain.

Can parties who receive the benefit of construction work such as principals under a head contract or contractors under a subcontract utilise security of payment legislation? The advantage of having this ability is obvious. If you can issue payment claims under the Act, then you can take advantage of the rapid and inexpensive adjudication procedure to determine their claims rather than having to seek their entitlement through the courts.

Some commentators have suggested:

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