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BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 11A Who are the trustee and beneficiaries of a project trust

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 11A

Who are the trustee and beneficiaries of a project trust

11A Who are the trustee and beneficiaries of a project trust

(1) This section applies to a project trust established for a contract (the
"project trust contract" ).
(2) The contracted party for the project trust contract is both the trustee and a beneficiary of the project trust.
(3) The contracted party
(a) becomes the trustee and a beneficiary of the project trust when the trust is established; and
(b) ceases to be the trustee and a beneficiary of the project trust when the trust is lawfully dissolved.
(4) A subcontractor for the project trust contract is a beneficiary of the project trust if—
(a) its subcontract is a first tier subcontract of the project trust contract; and
Note—
If the project trust contract is a subcontract of a head contract, a first tier subcontract of the project trust contract would also be a second tier subcontract of the head contract.
(b) the contracted work for its subcontract is protected work or the supply of related services; and
(c) the contract price for its subcontract is at least the minimum contract price.
(5) A subcontractor who is a beneficiary under subsection (4)
(a) becomes a beneficiary of the project trust when its subcontract is entered into; and
(b) ceases to be a beneficiary of the project trust when paid all amounts it is entitled to be paid under its subcontract.
(6) Subsection (7) applies if—
(a) the same parties enter into 2 or more separate subcontracts; and
(b) the separate subcontracts are for carrying out protected work at the same site or adjacent sites.
(7) The contract price for each of the separate subcontracts for the purpose of subsection (4) (c) is the total of the contract prices for all the separate subcontracts.