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Queensland
SUBCONTRACTORS'
CHARGES AMENDMENT
BILL 2001
Queensland
SUBCONTRACTORS' CHARGES
AMENDMENT BILL 2001
TABLE OF PROVISIONS
Section Page
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Amendment of s 5 (Charges in favour of subcontractors). . . . . . . . . . . . . . . 6
6 Omission of s 7A (Schemes of arrangement binding on subcontractors) . . . 7
7 Amendment of s 8 (Insufficiency of money to meet claims) . . . . . . . . . . . . 7
8 Amendment of s 9A (Contractor to furnish information as to employer). . . 8
9 Amendment of s 10 (Notice of claim of charge). . . . . . . . . . . . . . . . . . . . . . 9
10 Amendment of s 10A (Qualified persons). . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Amendment of s 11 (Consequences of notice of claim of charge) . . . . . . . . 11
12 Insertion of new ss 11A11E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
11A Use of security for benefit of subcontractor if no contractor
acceptance of liability for all claims . . . . . . . . . . . . . . . . . . . . . . . . . 12
11B Use of security for benefit of subcontractor if contractor
acceptance of liability for all claims . . . . . . . . . . . . . . . . . . . . . . . . . 14
11C Authority of court for security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
11D Certain subcontractor securities of no effect . . . . . . . . . . . . . . . . . . . 17
11E Duty of employer or superior contractor to advise security holder
about s 11A or 11B circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . 17
13 Amendment of s 12 (Enforcement of charge) . . . . . . . . . . . . . . . . . . . . . . . . 18
14 Amendment of s 15 (Proceedings in respect of charges) . . . . . . . . . . . . . . . 19
15 Amendment of s 17 (Power to proceed in absence of person against
whom proceedings brought) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
16 Amendment of s 21 (Application to court by person prejudicially affected) 19
2
Subcontractors' Charges Amendment Bill 2001
17 Amendment of s 22 (Vexatious notice of claim) . . . . . . . . . . . . . . . . . . . . . . 20
18 Insertion of new s 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
27 Transitional provision for Subcontractors' Charges Amendment
Act 2001 ............................................ 20
SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . 21
MINOR AMENDMENTS
2001
A BILL
FOR
An Act to amend the Subcontractors' Charges Act 1974
s1 4 s4
Subcontractors' Charges Amendment Bill 2001
The Parliament of Queensland enacts-- 1
1 Short title
Clause 2
This Act may be cited as the Subcontractors' Charges Amendment 3
Act 2001. 4
2 Commencement
Clause 5
This Act commences on a day to be fixed by proclamation. 6
3 Act amended
Clause 7
This Act amends the Subcontractors' Charges Act 1974. 8
4 Amendment of s 3 (Definitions)
Clause 9
(1) All words before definition "approved form"-- 10
omit, insert-- 11
`3 Definitions 12
`In this Act--'. 13
(2) Section 3-- 14
insert-- 15
` "land" includes land under water. 16
"project specific materials", for work the subject of a contract or 17
subcontract, means materials made specifically to be incorporated into 18
the work, other than the following materials-- 19
(a) materials that could, without substantial change, be incorporated 20
into other work; 21
(b) materials that have not been incorporated into the work and that 22
could reasonably be used for another purpose. 23
"security", for a contract or subcontract, means something-- 24
(a) given to, or for the direct or indirect benefit of, the party to the 25
contract or subcontract for whom the work the subject of the 26
s4 5 s4
Subcontractors' Charges Amendment Bill 2001
contract or subcontract is to be performed, by or for the party to 1
the contract or subcontract who is to perform the work the 2
subject of the contract or subcontract; and 3
(b) intended to secure, wholly or partly, the performance of the 4
contract or subcontract; and 5
(c) in the form of either, or a combination of both, of the 6
following-- 7
(i) an amount of money, other than an amount held as retention 8
money; 9
(ii) 1 or more valuable instruments, whether or not exchanged 10
for, or held instead of, retention money. 11
"structure", for a structure on land under water, includes a structure made 12
up of component parts that include-- 13
(a) component parts fixed to the land; and 14
(b) component parts that rise and fall with the rise and fall of the 15
water, and that are otherwise confined in their location by 16
component parts fixed to the land. 17
18
Example of a structure included under this definition--
19
A marina made up of fixed pylons, and pontoons that rise and fall with the water
20
level that are otherwise confined in their location by the pylons.
"supply of labour", for work the subject of a contract or subcontract, does 21
not include the supply of a person to perform an activity in relation to 22
the work if the activity is only administrative in nature. 23
"valuable instrument" means any of the following-- 24
(a) banker's undertaking; 25
(b) bond; 26
(c) inscribed stock; 27
(d) guarantee policy; 28
(e) interest bearing deposit; 29
(f) another instrument, to the extent it is convertible into an amount 30
of money.'. 31
s5 6 s5
Subcontractors' Charges Amendment Bill 2001
(3) Section 3, definition "work", after `and includes also'-- 1
insert-- 2
`the manufacture of project specific materials for work the subject of the 3
contract or subcontract, the supply of labour for work the subject of the 4
contract or subcontract, and'. 5
5 Amendment of s 5 (Charges in favour of subcontractors)
Clause 6
(1) Section 5(1), from `shall be entitled to'-- 7
omit, insert-- 8
`is entitled to-- 9
(a) a charge on the money payable to the contractor or a superior 10
contractor under the contractor's, or superior contractor's, 11
contract or subcontract; and 12
(b) subject to subsection (4), a charge on any security for the 13
contractor's, or superior contractor's, contract or subcontract.'. 14
(2) Section 5-- 15
insert-- 16
`(4) The charge on a security to which a subcontractor is entitled under 17
subsection (1)(b) secures a payment mentioned in subsection (2)-- 18
(a) only if the payment can not be satisfied by the charge mentioned 19
in subsection (1)(a); and 20
(b) to the extent of the security's maximum possible value for 21
securing performance of the contractor's, or superior 22
contractor's, contract or subcontract, other than to the extent that 23
the security is required to be used for securing, wholly or partly, 24
the performance of the contract or subcontract. 25
`(5) To remove any doubt, it is declared that, for a subcontractor's claim 26
of charge relating to retention money only-- 27
(a) the charge to which the subcontractor is entitled under 28
subsection (1)(a) is not limited to merely a charge on retention 29
money; and 30
(b) the charge to which the subcontractor is entitled under 31
subsection (1)(b) is not limited to merely a charge on any 32
s6 7 s7
Subcontractors' Charges Amendment Bill 2001
security that has been exchanged for, or is held instead of, 1
retention money. 2
`(6) Money that is or is to become payable to a subcontractor for work 3
done by the subcontractor under a subcontract, and the payment of which is 4
secured under subsection (2)-- 5
(a) includes money the payment of which is governed by a provision 6
of the subcontract still to be complied with, including for 7
example the following-- 8
(i) a provision establishing a procedure for the certification of 9
the amount, quality or value of work that has been 10
performed; 11
(ii) a provision establishing a procedure for the resolution of a 12
dispute about the amount, quality or value of work that has 13
been performed; and 14
(b) does not include the following-- 15
(i) damages for breach of contract or in tort; 16
(ii) an amount payable on the basis of an extra-contractual 17
remedy, including, for example, as reasonable 18
compensation for work done; 19
(iii) damages or other relief under another Act or an Act of 20
another State or the Commonwealth, including damages or 21
other relief under the Trade Practices Act 1974 (Cwlth).'. 22
6 Omission of s 7A (Schemes of arrangement binding on
Clause 23
subcontractors) 24
Section 7A-- 25
omit. 26
7 Amendment of s 8 (Insufficiency of money to meet claims)
Clause 27
Section 8-- 28
insert-- 29
`(2) For subsection (1), money that is or is to become payable under the 30
contract includes money that is or is to become payable on the basis of a 31
s8 8 s8
Subcontractors' Charges Amendment Bill 2001
charge on a security for the contract, including money payable under 1
section 11B or under an order of the court under section 11C.'. 2
8 Amendment of s 9A (Contractor to furnish information as to
Clause 3
employer) 4
(1) Section 9A, heading-- 5
omit, insert-- 6
`9A Supply of contract and security information to subcontractor'. 7
(2) Section 9A(1), from `shall forthwith furnish'-- 8
omit, insert-- 9
`must without delay give the subcontractor-- 10
(a) the name of the contractor's or superior contractor's employer; 11
and 12
(b) the address of-- 13
(i) the employer's place of business; or 14
(ii) if the employer does not have a place of business--the 15
employer's place of residence; and 16
(c) the identifying information about the contract between the 17
employer and the contractor or superior contractor that the 18
subcontractor needs for giving a notice of claim of charge in the 19
approved form under section 10; and 20
(d) advice as to whether there are any securities in existence for the 21
contract between the employer and the contractor or superior 22
contractor; and 23
(e) if known to the contractor or superior contractor, the name and 24
address of the holder of each security mentioned in 25
paragraph (d).'. 26
(3) Section 9A-- 27
insert-- 28
`(1A) Subsection (1B) applies if-- 29
(a) a subcontractor makes a demand in writing under subsection (1); 30
and 31
s9 9 s9
Subcontractors' Charges Amendment Bill 2001
(b) in response to the demand, a contractor or superior contractor 1
tells the subcontractor of the existence of a security, but does not 2
give the name and address of the holder of the security. 3
`(1B) On demand made in writing by the subcontractor, the contractor's 4
or superior contractor's employer must without delay give the 5
subcontractor the name and address of the holder of the security.'. 6
(4) Section 9A(2), `or superior contractor'-- 7
omit, insert-- 8
`, superior contractor or employer'. 9
(5) Section 9A(2), after `subsection (1)'-- 10
insert-- 11
`or (1B)'. 12
9 Amendment of s 10 (Notice of claim of charge)
Clause 13
(1) After section 10(1)(a)-- 14
insert-- 15
`(aa) if a person other than the employer or superior contractor holds a 16
security for the contract--must give notice in the approved form 17
of having made the claim to the person holding the security; 18
and'. 19
(2) Section 10-- 20
insert-- 21
`(1B) A notice of claim of charge must be supported by a statutory 22
declaration of the subcontractor, or, if the subcontractor is a corporation, of 23
an officer of the corporation, about the correctness of the claim, including 24
the correctness of the amount of the claim. 25
`(1C) The statutory declaration must be in the approved form. 26
`(1D) To remove any doubt, it is declared that when a charge on money 27
payable under a contract is claimed, the claim includes a charge on 28
retention money.'. 29
(3) Section 10(3), `under the contract'-- 30
omit, insert-- 31
`under the contract mentioned in subsection (1)'. 32
s 10 10 s 10
Subcontractors' Charges Amendment Bill 2001
(4) Section 10-- 1
insert-- 2
`(4A) However, if the reason for a failure to give notice under this 3
section is merely a failure to give a notice under subsection (1)(aa) to the 4
holder of a security, the charge does not attach to the security, but otherwise 5
attaches.'. 6
(5) Section 10(6)(a), `in accordance with subsection (1)'-- 7
omit, insert-- 8
`as required under subsection (1)(a), and supported by a statutory 9
declaration under subsection (1B)'. 10
(6) Section 10-- 11
insert-- 12
`(7) To remove any doubt, it is declared that a subcontractor may make 13
2 or more claims in relation to money payable or to become payable to the 14
subcontractor for work done by the subcontractor under a subcontract. 15
`(8) However-- 16
(a) each claim must be about a separate and distinguishable item of 17
the work done by the subcontractor under the subcontract; and 18
(b) there must not be more than 1 claim about any 1 item. 19
`(9) In this section-- 20
"officer", of a corporation, means-- 21
(a) if the corporation is a corporation under the Corporations Act 22
2001 (Cwlth)--a person who, under that Act, is an officer of the 23
corporation; or 24
(b) otherwise--a person, by whatever name called, who is 25
concerned, or takes part, in the management of the corporation.'. 26
10 Amendment of s 10A (Qualified persons)
Clause 27
Section 10A(1)(c), `carry out, and supervise,'-- 28
omit, insert-- 29
`carry out or supervise'. 30
s 11 11 s 11
Subcontractors' Charges Amendment Bill 2001
11 Amendment of s 11 (Consequences of notice of claim of charge)
Clause 1
(1) Section 11(3)-- 2
omit, insert-- 3
`(3) Within 14 days after the notice of the claim of charge mentioned in 4
subsection (1) is given under section 10(1)(b) to the contractor to whom the 5
money is payable, the contractor must give to the employer or superior 6
subcontractor by whom the money is payable, and to the subcontractor 7
giving notice of the claim of charge, a notice ("contractor's notice") in the 8
approved form that the contractor-- 9
(a) accepts liability to pay the amount claimed; or 10
(b) disputes the claim; or 11
(c) accepts liability to pay the amount (the "stated amount") stated 12
in the contractor's notice, but otherwise disputes the claim.'. 13
(2) Section 11(4), `Where notice is given pursuant to'-- 14
omit, insert-- 15
`If the contractor's notice is given under'. 16
(3) Section 11-- 17
insert-- 18
`(4A) If the contractor's notice is given under subsection (3)(c), the 19
employer or superior contractor by whom money is payable must pay to the 20
subcontractor the amount the employer or superior contractor is required to 21
retain, up to the stated amount. 22
`(4B) However, the employer or superior contractor is required to 23
comply with subsection (4) or (4A) only if, after payment is made under 24
the subsection, the retained amount will be equal to or more than the 25
unsatisfied amount.'. 26
(4) Section 11(6), after `any proceeding'-- 27
insert-- 28
`in relation to the amount paid'. 29
(5) Section 11(8), after `withdraw'-- 30
insert-- 31
`, wholly or partly,'. 32
s 12 12 s 12
Subcontractors' Charges Amendment Bill 2001
(6) After section 11(8)(a)-- 1
insert-- 2
`(aa) to the holder of any security to whom notice was given under 3
section 10(1)(aa); and'. 4
(7) Section 11-- 5
insert-- 6
`(9) In this section-- 7
"retained amount" means the total of-- 8
(a) all amounts still retained by the employer or superior contractor 9
under subsection (1); and 10
(b) all amounts paid into court by the employer or superior 11
contractor under subsection (5). 12
"unsatisfied amount" means the total of all amounts of claims of charge 13
for which a notice of claim of charge has been given, other than 14
amounts that have been-- 15
(a) satisfied by payment under subsection (4) or (4A); or 16
(b) the subject of a withdrawal of notice of claim of charge under 17
subsection (8). 18
12 Insertion of new ss 11A11E
Clause 19
After section 11-- 20
insert-- 21
`11A Use of security for benefit of subcontractor if no contractor 22
acceptance of liability for all claims 23
`(1) If at any time the unsatisfied amount for a contract is more than the 24
retained amount for the contract, the holder of a section 11A security for 25
the contract must-- 26
(a) retain the security until a court in which a subcontractor's claim 27
is heard makes an order under section 11C about enforcing the 28
charge over the security; or 29
(b) instead of retaining the security-- 30
s 12 13 s 12
Subcontractors' Charges Amendment Bill 2001
(i) if the security is held as an amount of money--pay the 1
amount, up to the difference amount for the contract, into 2
court; or 3
(ii) if the security is not held as an amount of money but may be 4
converted into an amount of money--convert the security, 5
wholly or partly, into an amount of money and pay the 6
amount, up to the difference amount for the contract, into 7
court. 8
`(2) If the holder of the section 11A security does not comply with 9
subsection (1), the holder is personally liable to pay to a subcontractor the 10
amount of the subcontractor's claim to the extent that the security would 11
have been capable under this Act, if the holder had complied with the 12
subsection, of satisfying the claim. 13
`(3) A payment of an amount under subsection (1)(b) discharges the 14
holder of the security of all further liability for the amount paid and of the 15
costs of any proceeding in relation to the amount paid. 16
`(4) Subsections (1) and (2) do not stop the holder of the security from 17
exercising an entitlement to use the security for securing the performance 18
of the contract, including by keeping control of the security until, had this 19
section not commenced, the security would be required to be surrendered, 20
wholly or partly. 21
`(5) A provision of the contract, or of another arrangement, about the 22
section 11A security, including a provision of the security itself, and 23
including a provision providing for the surrender, wholly or partly, of the 24
security, is of no effect to the extent it purports-- 25
(a) to stop the holder of the security from complying with 26
subsection (1); or 27
(b) to operate to the detriment of a person if the holder complies with 28
subsection (1). 29
`(6) An amount paid into court under subsection (1)(b) may be paid out 30
only under an order of the court. 31
`(7) In this section-- 32
"difference amount", for a contract, means the amount by which the 33
unsatisfied amount for the contract is more than the retained amount 34
for the contract. 35
"retained amount", for a contract, means the total of-- 36
s 12 14 s 12
Subcontractors' Charges Amendment Bill 2001
(a) all amounts a person is retaining under section 11(1) for the 1
contract; and 2
(b) all amounts a person has paid into court under section 11(5) for 3
the contract; and 4
(c) all amounts the holder of the section 11A security for the 5
contract has paid into court under subsection (1)(b) in relation to 6
the security. 7
"section 11A security", for a contract, means a security for the contract in 8
relation to which all the following circumstances apply-- 9
(a) the security is held by an employer, superior contractor or other 10
person; 11
(b) under section 11(1), a person has become subject to a 12
requirement to retain money that is or is to become payable by 13
the person under the contract, to satisfy a subcontractor's claim 14
or claims or the claims of 2 or more subcontractors; 15
(c) there have not been acceptances of liability under section 11(3) 16
for the total of all amounts of claims of charge for the contract 17
for which a notice of claim of charge has been given and not 18
withdrawn. 19
"unsatisfied amount", for a contract, means the total of all amounts of 20
claims of charge for the contract for which a notice of claim of charge 21
has been given, other than amounts that have been-- 22
(a) satisfied by payment under section 11(4) or (4A); or 23
(b) the subject of a withdrawal of notice of claim of charge under 24
section 11(8). 25
`11B Use of security for benefit of subcontractor if contractor 26
acceptance of liability for all claims 27
`(1) If at any time the unsatisfied amount for a contract is more than the 28
retained amount for the contract, the holder of a section 11B security for 29
the contract must-- 30
(a) retain the security until a court in which a subcontractor's claim 31
is heard makes an order under section 11C about enforcing the 32
charge over the security; or 33
(b) instead of retaining the security-- 34
s 12 15 s 12
Subcontractors' Charges Amendment Bill 2001
(i) if the security is held as an amount of money--pay the 1
amount, up to the difference amount for the contract, to the 2
subcontractor or subcontractors to whom the acceptance of 3
liability relates; or 4
(ii) if the security is not held as an amount of money but may be 5
converted into an amount of money--convert the security, 6
wholly or partly, into an amount of money and pay the 7
amount, up to the difference amount for the contract, to the 8
subcontractor or subcontractors to whom the acceptance of 9
liability relates. 10
`(2) If the holder of the section 11B security does not comply with 11
subsection (1), the holder is personally liable to pay to a subcontractor the 12
amount of the subcontractor's claim to the extent that the security would 13
have been capable under this Act, if the holder had complied with the 14
subsection, of satisfying the claim. 15
`(3) A payment of an amount under subsection (1)(b) discharges the 16
holder of the security of all further liability for the amount paid and of the 17
costs of any proceeding in relation to the amount paid. 18
`(4) Subsections (1) and (2) do not stop the holder of the security from 19
exercising an entitlement to use the security for securing the performance 20
of the contract, including by keeping control of the security until, had this 21
section not commenced, the security would be required to be surrendered, 22
wholly or partly. 23
`(5) A provision of the contract, or of another arrangement, about the 24
section 11B security, including a provision of the security itself, and 25
including a provision providing for the surrender, wholly or partly, of the 26
security, is of no effect to the extent it purports-- 27
(a) to stop the holder of the security from complying with 28
subsection (1); or 29
(b) to operate to the detriment of a person if the holder complies with 30
subsection (1). 31
`(6) In this section-- 32
"difference amount", for a contract, means the amount by which the 33
unsatisfied amount for the contract is more than the retained amount 34
for the contract. 35
"retained amount", for a contract, means the total of-- 36
s 12 16 s 12
Subcontractors' Charges Amendment Bill 2001
(a) all amounts a person is retaining under section 11(1) for the 1
contract; and 2
(b) all amounts a person has paid into court under section 11(5) for 3
the contract; and 4
(c) all amounts the holder of the section 11B security for the contract 5
has paid to the subcontractor or subcontractors under 6
subsection (1)(b) in relation to the security. 7
"section 11B security", for a contract, means a security for the contract in 8
relation to which all the following circumstances apply-- 9
(a) the security is held by an employer, superior contractor or other 10
person; 11
(b) under section 11(1), a person has become subject to a 12
requirement to retain money that is or is to become payable by 13
the person under the contract, to satisfy a subcontractor's claim 14
or claims or the claims of 2 or more subcontractors; 15
(c) there have been acceptances of liability under section 11(3) for 16
the total of all amounts of claims of charge for the contract for 17
which a notice of claim of charge has been given and not 18
withdrawn. 19
"unsatisfied amount", for a contract, means the total of all amounts of 20
claims of charge for the contract for which a notice of claim of charge 21
has been given, other than amounts that have been-- 22
(a) satisfied by payment under section 11(4) or (4A); or 23
(b) the subject of a withdrawal of notice of claim of charge under 24
section 11(8). 25
`11C Authority of court for security 26
`(1) This section applies if the holder of a security for a contract is 27
retaining the security under section 11A(1)(a) or 11B(1)(a) or has paid an 28
amount for the security into court under section 11A(1)(b). 29
`(2) The court may make the order it considers appropriate for enforcing 30
the charge over the security to which a subcontractor is entitled under 31
section 5, including an order for realising the security. 32
`(3) The court may make an order for realising the security only if the 33
holder of the security is no longer entitled, under any contract or other 34
s 12 17 s 12
Subcontractors' Charges Amendment Bill 2001
arrangement about the security, including under the security itself, to use 1
the security-- 2
(a) for securing the performance of the contract mentioned in 3
subsection (1); or 4
(b) in some other way provided for in the contract mentioned in 5
subsection (1). 6
`(4) Without limiting the orders the court may make under 7
subsection (2), the court may order the holder of the security to produce the 8
security to the court. 9
`(5) A precondition or expiry provision for the security is of no effect to 10
the extent that the provision could operate to stop the realisation of a 11
security under subsection (2). 12
`(6) In this section-- 13
"expiry provision", for a security, means a provision of a contract or 14
another arrangement about the security, including a provision of the 15
security itself, under which the security stops, wholly or partly, having 16
effect. 17
"precondition provision", for a security, means a provision of a contract 18
or another arrangement about the security, including a provision of the 19
security itself, stating the circumstances that are to apply before the 20
holder of the security may exercise an entitlement to use the security 21
for securing the performance of a contract. 22
`11D Certain subcontractor securities of no effect 23
`To the extent that something is given by or for a subcontractor for 24
securing, wholly or partly, the performance by a contractor or a superior 25
contractor of the contractor's, or superior contractor's, contract or 26
subcontract, it is of no effect. 27
`11E Duty of employer or superior contractor to advise security holder 28
about s 11A or 11B circumstances 29
`(1) This section applies if a subcontractor who intends to claim a charge 30
on money payable under a contract-- 31
(a) gives an employer or superior contractor a notice under 32
section 10(1)(a); and 33
s 13 18 s 13
Subcontractors' Charges Amendment Bill 2001
(b) gives the holder of a security for the contract a notice under 1
section 10(1)(aa). 2
`(2) The security holder may ask the employer or superior contractor for 3
information the holder reasonably requires in order to comply with 4
section 11A or 11B. 5
`(3) The employer or superior contractor must comply with a request 6
under subsection (2) to the greatest practicable extent. 7
`(4) Subsection (5) applies if-- 8
(a) the employer or superior contractor does not comply with 9
subsection (3); and 10
(b) because of the employer's or superior contractor's failure to 11
comply with section (3), the security holder does not comply 12
with section 11A(1) or 11B(1). 13
`(5) The employer or superior contractor, instead of the security holder, 14
is personally liable to pay the subcontractor the amount the subcontractor is 15
liable to be paid under section 11A(2) or 11B(2).'. 16
13 Amendment of s 12 (Enforcement of charge)
Clause 17
(1) Section 12-- 18
insert-- 19
`(1A) To remove any doubt, it is declared that a person who is an 20
employer or superior contractor makes satisfactory arrangements under 21
subsection (1) if the person pays into court under section 11(5) the amount 22
the person is required to retain under section 11.'. 23
(3) Section 12(3A), after `section 10'-- 24
insert-- 25
`, whose charge has not been extinguished under section 15,'. 26
(4) Section 12(3B), `(whether or not the subcontractor has given a notice 27
of claim of charge)'-- 28
omit. 29
s 14 19 s 16
Subcontractors' Charges Amendment Bill 2001
14 Amendment of s 15 (Proceedings in respect of charges)
Clause 1
(1) Section 15(1)(b), `2 months'-- 2
omit, insert-- 3
`1 month'. 4
(2) Section 15(2), after `money payable'-- 5
insert-- 6
`or a security in existence'. 7
15 Amendment of s 17 (Power to proceed in absence of person
Clause 8
against whom proceedings brought) 9
Section 17, `in accordance with section 16'-- 10
omit. 11
16 Amendment of s 21 (Application to court by person prejudicially
Clause 12
affected) 13
Section 21-- 14
insert-- 15
`(3) Without limiting the circumstances in which a person may be 16
prejudicially affected for subsection (1), a person (the "affected person") 17
is taken to be prejudicially affected by the claim of charge of a 18
subcontractor (the "claiming subcontractor") if-- 19
(a) because of the claim of charge-- 20
(i) the payment of any amount to which the affected person is 21
entitled is delayed or otherwise affected; or 22
(ii) the release of a security for a contract or subcontract given 23
by of for the affected person is delayed or otherwise 24
affected; and 25
(b) the affected person is a superior contractor in relation to the 26
claiming subcontractor; and 27
(c) the affected person has already paid, to a person who is a 28
contractor or superior contractor in relation to the claiming 29
subcontractor, an amount for work the subject of the claim of 30
charge.'. 31
s 17 20 s 18
Subcontractors' Charges Amendment Bill 2001
17 Amendment of s 22 (Vexatious notice of claim)
Clause 1
Section 22-- 2
insert-- 3
`(1A) Without limiting subsection (1), a person gives a notice of a claim 4
of charge without reasonable grounds if the person knows, or ought 5
reasonably to know, that the amount of the claim exceeds, to an 6
unreasonable extent in the circumstances of the claim, the amount actually 7
payable to the person.'. 8
18 Insertion of new s 27
Clause 9
After section 26-- 10
insert-- 11
`27 Transitional provision for Subcontractors' Charges Amendment 12
Act 2001 13
`(1) A provision of this Act about a security for a contract or subcontract 14
does not apply to the security if the contract or subcontract was entered into 15
before the commencement of this section. 16
`(2) For subsection (1), to the extent that a contract or subcontract is 17
amended on or after the commencement of this section, the contract or 18
subcontract is taken not to have been entered into before the 19
commencement of this section. 20
`(3) The period of 1 month mentioned in section 15(1)(b) must be taken 21
to be 2 months if the notice of claim of charge was given before the 22
commencement of this section.'. 23
21
Subcontractors' Charges Amendment Bill 2001
SCHEDULE 1
MINOR AMENDMENTS 2
section 3 3
1 Section 3, definition "court", `Stipendiary Magistrate'-- 4
omit, insert-- 5
`magistrate'. 6
2 Section 3, definition "employer", `shall not be'-- 7
omit, insert-- 8
`is not'. 9
3 Section 3, definition "work", paragraphs (a), (b), (c), (e), (f)(i) and 10
(f)(ii), at the end-- 11
insert-- 12
`or'. 13
4 Sections 3A and 18, `shall be'-- 14
omit, insert-- 15
`are'. 16
5 Section 3A(a), `shall include'-- 17
omit, insert-- 18
`include'. 19
22
Subcontractors' Charges Amendment Bill 2001
SCHEDULE (continued)
6 Section 3A(a), at the end-- 1
insert-- 2
`and'. 3
7 Sections 3B, 6, 10(1A) and (6), 11(2), 12(3A), 15(2) and (3) and 20, 4
`shall be'-- 5
omit, insert-- 6
`is'. 7
8 Sections 5(1), 8, 9(1), 11(1), 12(1) and 13, `Where'-- 8
omit, insert-- 9
`If'. 10
9 Section 5(2), `shall secure'-- 11
omit, insert-- 12
`secures'. 13
10 Sections 5(3), 10(4) and 10A(3), `shall'-- 14
omit, insert-- 15
`does'. 16
11 Sections 7(1) and 12(2A), `shall have'-- 17
omit, insert-- 18
`has'. 19
12 Section 7(2), `shall'-- 20
omit, insert-- 21
`can'. 22
23
Subcontractors' Charges Amendment Bill 2001
SCHEDULE (continued)
13 Sections 8, 9A(3), 10(1), (2) and (3), 10A(2), 11(1) and (4), 15(1), 1
21(2) and 22(2), `shall'-- 2
omit, insert-- 3
`must'. 4
14 Section 9A(2), `shall lie'-- 5
omit, insert-- 6
`lies'. 7
15 Section 10(1A)(a), at the end-- 8
insert-- 9
`and'. 10
16 Section 10(2), `where'-- 11
omit, insert-- 12
`if'. 13
17 Section 10(6), `shall not be'-- 14
omit, insert-- 15
`is not'. 16
18 Section 10A(1)(a), (b) and (d), at the end-- 17
insert-- 18
`or'. 19
19 Section 11(6), `shall discharge'-- 20
omit, insert-- 21
`discharges'. 22
24
Subcontractors' Charges Amendment Bill 2001
SCHEDULE (continued)
20 Section 11(7), `shall not be paid out save'-- 1
omit, insert-- 2
`may be paid out only'. 3
21 Section 14, `shall apply'-- 4
omit, insert-- 5
`applies'. 6
22 Section 15(1)(a) and (b), at the end-- 7
insert-- 8
`and'. 9
23 Section 23, `shall be'-- 10
omit, insert-- 11
`is to be'. 12
24 Section 23, `shall not'-- 13
omit, insert-- 14
`does not'. 15
25 Section 24, `shall to that extent be'-- 16
omit, insert-- 17
`is to that extent'. 18
19
© State of Queensland 2001
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