Can I exercise a lien under the Security Of Payment Act?

The Act provides that the claimant has a lien or charge over unfixed plant or material supplied by the claimant to the respondent for or in connection with the carrying out of the construction work.

A lien is the right to seize and sell goods in order to obtain payment. If the goods are sold for more than the amount owed under the Act then the balance must be paid to the respondent.

Can I use the Contractors Debts Act 1997 alongside of the Security Of Payment Act to recover payment?

The claimant may also use the Contractors Debts Act 1997, where the claimant is a subcontractor claiming for work or goods which the main contractor is acquiring for the purposes of performing a main contract for a principal.

In such circumstances the claimant would ask the court, at the time of lodging the adjudication certificate, for a debt certificate under section 7 of the Contractors Debts Act 1997.

The debt certificate directs the principal to pay the claimant’s judgement debt from any money that may be due to the main contractor. The clerk of the court will require the claimant to provide details of the principal and evidence that the work or goods the subject of the claimant’s claim is part of or incidental to the work under the main contract.

It is strongly recommended that the claimant seek legal advice before taking this course of action.

Other forms for Contractors Debts Act 1997

• Notice of Claim (Section 6)
• Debt Certificate (Section 7)
• Discharge Notice (Section 13)
• Attachment Order (Section 14)
• Notice of Details of Principal (Section 15)

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