Payment revolution: Part I - What happens when subcontractors don't get paid? We asked leading construction adjudication lawyer Scott Pettersson to explain the latest Security of Payment legislation across Australia

摘要

This is Part 1 of a 2-part article. Part 2 will appear in the Spring 2006 Issue of Business Connection. In 1999 the NSW Government acted to change the power imbalance regarding payments to subcontractors in the construction industry. To do this they created a new statutory regime to allow subcontractors to seek a private adjudication of a claim for payment. Unfortunately, the new Act was of limited effect and was only used occasionally. The major issue with the Act was the capacity of contractors to delay payment by paying disputed funds into court - and then allowing the wheels of justice to spin as slowly and expensively as ever. Following an extensive review process the Act was amended and the power changed in 2003.