In the building industry there are two pieces of legislation
that allow for subcontractors to make claims for monies owed for
works completed.
The Building and Construction Industry Payments Act
2004 (BCIPA) commenced 10 years ago and is
often cited as the quickest way to ensure payment for a
subcontractor. Essentially, BCIPA creates a statutory based system
of rapid adjudication for the quick resolution of payment disputes
on an interim basis and moneys are paid on account pending final
determination.
However, an alternate remedy (which has been around for some 40
years) is often overlooked. The Subcontractor's Charges Act
1974 (the Act) allows a subcontractor to
secure payment by skipping the builder above them in the supply
chain, and securing payment from the principal/developer who would
have normally paid the builder. The Act is particularly beneficial
in circumstances where a builder may be in financial difficulty
and/or insolvent, but still owes a
