Contractors Debt Recovery is all all about maximizing debt recovery options.
Contractors Debt Recovery was made a great deal better when using the the Building and Construction Industry Security of Payment Amendment Act 2010 (NSW) (“Amendment”) which commenced on 28 February 2011 with the addition of “Payment Withholding Requests”.
This Amendment means a subcontractor can assert rights directly against a principal contractor to obtain payments due to it from the contractor. Through this process a subcontractor requires a principal contractor to withhold money from a contractor, and then once a successful determination of its adjudication application against that contractor is obtained the Contractors Debts Act 1997 can be invoked to force the payment from the Principal directly to the subcontractor.
Importantly, this Amendment sets a strict time frame to increase the effectiveness of the Contractors Debts Act 1997 (NSW).
Under the Contractors Debts Act 1997, the benefit of the obligation of a principal contractor to pay money to a contractor is reassigned to a subcontractor in order to satisfy a judgement obtained by a subcontractor against a contractor.
Once an adjudication application is lodged a payment withholding request may be served on the Principal. This means a subcontractor earmarks money which becomes payable by the principal contractor to a contractor, simply by serving a payment withholding request on the principal contractor.
So to get the Contractors Debt Recovery process started, the first step is a Payment Claim under the Act, the second step is a second notice under the Act if no Payment Schedule received as yet, then after seven days lodge an adjudication application and serve a payment withholding request and we are off and running.
For assistance at any stage call 1300 RECOUP (1300 732 687)