BUILDING AND CONSTRUCTION INDUSTRY (SECURITY OF PAYMENT) ACT 2009 - SECT 13 Due date for payment

BUILDING AND CONSTRUCTION INDUSTRY (SECURITY OF PAYMENT) ACT 2009 - SECT 13

    (1)     A progress payment under a construction contract is payable on the earlier of the following:

        (a)     15 business days after a payment claim is given under part 4 in relation to the payment;

        (b)     the day when the payment becomes payable under the contract.

    (2)     Interest is payable on the unpaid amount of a progress payment that is payable under subsection (1) at the greater of the following:

        (a)     the rate of interest applying from time to time under the Court Procedures Rules 2006

, schedule 2, part 2.2 (Interest after judgment);

        (b)     the rate stated under the construction contract.

    (3)     If a progress payment is payable under subsection (1), the claimant is entitled to exercise a lien in relation to the unpaid amount over any unfixed plant or materials supplied by the claimant for use in connection with carrying out construction work for the respondent.

Note 1     Claimant— s ee s 15.

Note 2     Respondent— s ee s 15.

    (4)     Any lien or charge over the unfixed plant or materials existing before the date on which the progress payment becomes payable takes priority over a lien under subsection (3).

    (5)     Subsection (3) does not create any right against a third party who is the owner of the unfixed plant or materials.