NSW Security of Payment Act Helps Both Parties in the Construction Industry
The NSW security of payment act has been devised to help subcontractors in the construction industry. The building and construction industry is one where thousands and even millions of dollars are spent and earned in the building of various things from bridges to apartment buildings and shopping complexes to name just a few. The main contractor will usually have many subcontractors to come in and complete specialist work such as earthmoving, plumbing, electrical connections and more. Therefore the payments system gets quite complicated.
The main company has the pay their contractors to get the work done so that they themselves can get paid. But often the contractors are the very ones who suffer the most when financial problems crop up. Very often, they keep on working in the hopes of finally getting paid, when in actual fact they should stop until they get some kind of progressive payment.
In fact a contractor who has not been paid is entitled to serve a payment claim to the person who should have paid them but has not. Such a claim must contain certain pertinent details about the work done, such as where and what it is. It must also be specific in regards to the amount being claimed. Finally, the claim itself must state that it is being made under the claims act.
The person to whom the claim is made must then respond appropriately as described by the security of payment act QLD if the work has been carried out in Queensland. If they do not then the matter can be taken to court. This provision is not only for those who carry out construction work, but for those who supply goods and services.
It is important to note that the respondent has to make the correct response under the act within a certain time frame. There could be good reason why they have not paid the amount due and so this should be detailed in their response. If they don’t respond in the right time frame they will become liable for the whole of the debt.
It can be seen that the security of payments act nsw is fair to contractors, suppliers and all those involved in the process and offers a way for all to have their point of view heard. Contractors have a right to fair progressive payments, just as those who contract them have a right to expect the work to be done well and on time.
