Building & Construction Industry Security Of Payment Act 1999 – Payment Withholding Requests

New South Wales has been at the forefront of introducing and improving legislation that assists subcontractors, suppliers, and consultants recover money they are owed for construction work and or related goods and services.

Security Of Payments Act – Division 2A – Claimants Rights Against A Principal Contractor

Under the Security Of Payments Act a subcontractor who has applied for adjudication can secure the money the are owed by forcing a principal contractor to withhold an amount of money from payments due to the contractor equivalent to that the subcontractor is owed by serving a “Payment Withholding Request” on the Principal Contractor.

How To Prepare & Serve a Payment Withholding Request

This is a very straightforward process which the principal contractor is bound by law to comply with.

Step One :

You must have a contract withing the meaning of the Building & Construction Industry Security Of Payment Act 1999.

Step Two :

You must have carried out the work correctly and without defect,

Step Three :

You must have served a payment claim which is valid under the Building & Construction Industry Security Of Payment Act 1999.

Step Four :

You must have received a payment schedule from the respondent (debtor) that you dispute or you have served a second notice under section 17/2 of the Building & Construction Industry Security Of Payment Act 1999.

Step Five :

You must have lodged and adjudication application.

Step Six :

Prepare and serve a Payment Withholding Request

Step Seven :

Win at adjudication

Step Eight

Serve a Notice Of Claim and a Debt Certificate on the Principal Contractor and collect your money.