Those in the construction industry will be familiar with
the "sudden death" regime set out in the Construction
Contracts Act 2002 (CCA). If a valid payment claim is issued and no
payment schedule is received within the applicable timeframe, the
amount claimed becomes a due debt.
The recent case of Nicholls Group Projects Ltd v Plan Design
Build Homes Ltd [2022) NZHC 56 reiterates the importance of
issuing of a payment schedule on time.
Nicholls Group Projects Ltd v Plan Design Build
Homes Ltd
In this case, Plan Design Ltd (Plan Design)
agreed to provide labourers for a building project managed by the
Nicholls Group Project Ltd (Nicholls Group)
(contract).
Plan Design issued four invoices for work it completed as
payment claims under the CCA totalling $96,707.87. These were based
on the contractually agreed price of $65 per hour for 5 builders.
Nicholls Group did not provide a payment schedule in response. Plan
Design then issued a statutory demand on the
