As we continue to see the building and construction industry
work through the fragile economy, it is timely to revisit the
options that builders, sub-contractors and workers have in securing
payment on time.
In the building and construction industry, a worker's lien
is a common tool used by builders to recover a debt owed by a
landowner (client) for work performed on the landowner's
property. A worker's lien, while distinguishable from a caveat,
has the same purpose and effect as a caveat. It prohibits any
further dealings (for example, sale of property) with the property
without the consent of the person who has lodged the lien or
caveat.
Another useful and effective tool in securing payment for
building work which is often overlooked is a statutory charge. This
is created under section 7 of the Worker's Liens Act
1893 ("the Act"). A statutory
charge facilitates a creditor (sub sub-contractor) to claim debts
from the landowner/principal if it is delayed or not
