Contractors Debts Act 1997 facilitates the re-assignment of a debt owed by a contractor to the principal contractor.
This is especially important to subcontractors who are dealing with unreasonable clients who are doing anything and everything they can to resist payment even after judgment has been awarded against them. New South Wales is certainly the envy of all of the other states when it comes to this piece of legislation and how it works to bolster the Security Of Payments Act NSW process.
The Contractors Debts Act 1997 works hand in hand with the Building & Construction Industry Security Of Payment Act 1999 for the Security Of Payments Act NSW purposes.
The Contractors Debts Act 1997 follows on from serving a Payment Withholding Request under the Building & Construction Security Of Payments Act 1999 upon lodgement of an adjudication application. The Payment Withholding request is served on a principal contractor who then must withhold monies from the Contractor equivalent to the amount claimed the subcontractor pending the outcome of the adjudication application.
Once the adjudication application is determined, assuming the claimant is successful, and the claimant proceeds to enter judgment in the appropriate court, the Contractors Debts Act 1997 then takes over from the Security of Payments Act NSW and reassigns the debt to the principal contractor who is holding the money.
The principal is then ordered by the court to pay the money to the claimant. To read more in detail, click here: Contractors Debts Act 1997
To ensure you take full advantage of the Contractors Debts Act 1997 from the very start of the Security Of Payments Act NSW process call RECOUP Contractor Debt Recovery for expert assistance.