Northern Territory Consolidated Acts

CONSTRUCTION CONTRACTS (SECURITY OF PAYMENTS) ACT - SECT 67

(1) This section applies to a contract made before the repeal of the repealed Act.

(2) The repealed Act continues to apply to the contract as if it had not been repealed.

(3) This section does not limit section 12 of the Interpretation Act .

(4) In this section:

repealed Act means the Workmen's Liens Act as in force immediately before the commencement of section 66.

sections 16 to 24 (inclusive)

1 Variations must be agreed

The contractor is not bound to perform any variation of its obligations unless the contractor and the principal have agreed on -

(a) the nature and extent of the variation of the obligations; and

(b) the amount, or a way of calculating the amount, that the principal must pay the contractor in relation to the variation of the obligations.

2 Contractor entitled to be paid

(1) The contractor is entitled to be paid a reasonable amount for performing its obligations.

(2) Subclause (1) applies whether or not the contractor performs all of its obligations.

3 Entitlement to make claim

The contractor is entitled to make one or more claims for a progress payment in relation to the contractor's obligations it has performed and for which it has not been paid by the principal.

(1) A claim by the contractor for a progress payment can be made at any time after the contractor has performed any of its obligations.

(2) The making of a claim for a progress payment does not prevent the contractor from making another claim for an amount payable to the contractor under or in connection with this contract.

5 Content of claim for payment

(1) A payment claim under this contract must -

(a) be in writing;

(b) be addressed to the party to which the claim is made;

(c) state the name of the claimant;

(d) state the date of the claim;

(e) state the amount claimed;

(f) for a claim by the contractor - itemise and describe the obligations the contractor has performed and to which the claim relates in sufficient detail for the principal to assess the claim;

(g) for a claim by the principal - describe the basis for the claim in sufficient detail for the contractor to assess the claim;

(h) be signed by the claimant; and

(i) be given to the party to which the claim is made.

(2) For a claim by the contractor, the amount claimed must be calculated in accordance with this contract or, if this contract does not provide a way of calculating the amount, the amount claimed must be -

(a) if this contract states that the principal must pay the contractor one amount (the contract sum ) for the performance by the contractor of all of its obligations under this contract (the total obligations ) - the proportion of the contract sum that is equal to the proportion that the obligations performed and detailed in the claim are of the total obligations;

(b) if this contract states that the principal must pay the contractor in accordance with rates stated in this contract - the value of the obligations performed and detailed in the claim calculated by reference to the rates; or

(c) otherwise - a reasonable amount for the obligations performed and detailed in the claim.

(3) Subclause (2) does not prevent the amount claimed in a progress claim from being an aggregate of amounts calculated under one or more of subclause (2)(a), (b) and (c).

6 Responding to payment claim by notice of dispute or payment

(1) This clause applies if -

(a) a party receives a payment claim under this contract; and

(b) the party -

(i) believes the claim should be rejected because the claim has not been made in accordance with this contract; or

(ii) disputes the whole or part of the claim.

(2) The party must -

(a) within 14 days after receiving the payment claim -

(i) give the claimant a notice of dispute; and

(ii) if the party disputes part of the claim - pay the amount of the claim that is not disputed; or

(b) within 28 days after receiving the payment claim, pay the whole of the amount of the claim.

(3) The notice of dispute must -

(a) be in writing;

(b) be addressed to the claimant;

(c) state the name of the party giving the notice;

(d) state the date of the notice;

(e) identify the claim to which the notice relates;

(f) if the claim is being rejected under subclause (1)(b)(i) - state the reasons for believing the claim has not been made in accordance with this contract;

(g) if the claim is being disputed under subclause (1)(b)(ii) - identify each item of the claim that is disputed and state, for each of the items, the reasons for disputing it; and

(h) be signed by the party giving the notice.

(4) If under this contract the principal is entitled to retain part of an amount payable by the principal to the contractor -

(a) subclause (2)(b) does not affect the entitlement; and

(b) the principal must advise the contractor in writing (either in a notice of dispute or separately) of an amount retained under the entitlement.

7 Interest payable on overdue payments

(1) Interest is payable on the part of an amount that is payable under this contract by a party to another party on or before a certain date but which is unpaid after that date.

(2) The interest must be paid for the period beginning on the day after the date on which the amount is due and ending on and including the date on which the amount payable is paid.

(3) The rate of interest at any time is equal to that prescribed by the Regulations for that time.

8 When ownership of goods supplied by contractor passes

(1) Subclause (2) applies to goods that are -

(a) related to construction work; and

(b) supplied to the site of the construction work by the contractor under its obligations under this contract.

(2) The ownership of the goods passes from the contractor when whichever of the following happens first:

(a) the contractor is paid for the goods;

(b) the goods become fixtures.

9 Duties of principal and other persons about unfixed goods on insolvency

(1) This clause applies if -

(a) goods that are related to construction work have been supplied to the site of the construction work by the contractor under its obligations under this contract;

(b) the contractor has not been paid for the goods;

(c) the goods have not become fixtures;

(d) ownership of the goods has not passed from the contractor;

(e) the goods are in the possession of or under the control of -

(i) the principal; or

(ii) a person for whom, directly or indirectly, the principal is performing construction work or to whom, directly or indirectly, the principal is supplying goods or services that are related to construction work; and

(f) the principal or that person becomes an insolvent.

(2) The principal and the person must not, during the insolvency, allow the goods to become fixtures or to fall into the possession of or under the control of another person (other than the contractor) except with the prior written consent of the contractor.

(3) In addition, the principal and the person must allow the contractor a reasonable opportunity to repossess the goods.

(4) In this clause -

insolvent means -

(a) for a natural person - an insolvent under administration within the meaning of the Corporations Act 2001; or

(b) for a body corporate - an externally-administered body corporate within the meaning of the Corporations Act 2001.

10 Retention money to be held on trust

If the principal retains from an amount payable by the principal to the contractor for the performance by the contractor of its obligations part of that amount (the retention money ), the principal holds the retention money on trust for the contractor until whichever of the following happens first:

(a) the retention money is paid to the contractor;

(b) the contractor agrees in writing to give up any claim to the retention money;

(c) the retention money ceases to be payable to the contractor under this contract;

(d) an adjudicator, arbitrator or other person or a court or other body.