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ARTICLE · 22 NOVEMBER 2016

Unfound confusion over Construction Contracts Act 2004 changes

All the proposed amendments seek to do is to make the Act more effective in protecting construction contractors.

AustraliaReal Estate and Construction

Much has been written about the proposed changes to WA's Construction Contracts Act 2004.

In particular, many have complained that the proposed changes will allow construction contractors to "recycle" payment claims, or in other words, make the same claim over and over until finally, through sheer desperation, the principal gives in and approves the claim, or the contractor finds a sympathetic adjudicator to uphold it.

One commentator has gone as far as saying that contractors might exploit the changes by accumulating payment claims, then, perhaps on Christmas Eve, seeking to have many claims adjudicated in one hit. Still worse, says this commentator, a principal will have only ten days to respond to the many payment claims that a contractor might accumulate over many months!

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