The Building and Construction Industry Security of Payment Act 1999 (“the Act”) provides a fast and effective way for building industry participants to recover debts of any size, fast. In fact, if you’re a builder or subcontractor owed more than $200,000.00, it’s possible to utilise the Act to obtain a Court Judgment for the outstanding debt in less than 40 days.
There’s much written about the process that can be found on the internet, but sometimes the amount of information given is just overwhelming. Below is a simple, four step guide that spells out the process in an easily digestible form explaining how we can help to get that money in your pocket, fast.
Step 1 – Serve a valid Payment Claim
A valid Payment Claim must include;
- a description of the construction work claimed for;
- the amount claimed; and
- the words “This is a Payment Claim made in accordance with Building and Construction Industry Security of Payment Act 1999”.
The Payment Claim should be served;
- on or from the last day of the month in which the work was done or on an earlier date if the contract provides for one;
- on or from the last day of any subsequent month or an earlier date of that month if the contract provides for one; but
- not later than 12 months after the work was done.
If your contract has been terminated, you can still serve a payment claim following above rules.
If you’re not confident to prepare the Payment Claim yourself , then contact our specialist building and construction lawyers.