Queensland Consolidated Acts

SUBCONTRACTORS' CHARGES ACT 1974 - SECT 5

(1) If an employer contracts with a contractor for the performance of work upon or in respect of land or a building, or other structure or permanent improvement upon land or a chattel, every subcontractor of the contractor is entitled to--

(a) a charge on the money payable to the contractor or a superior contractor under the contractor's, or superior contractor's, contract or subcontract; and

(b) subject to subsection (4), a charge on any security for the contractor's, or superior contractor's, contract or subcontract.

(2) The charge of a subcontractor secures payment in accordance with the subcontract of all money that is payable or is to become payable to the subcontractor for work done by the subcontractor under the subcontract.

(3) The total amount recoverable under the charges of subcontractors does not exceed the amount payable to the contractor or subcontractor under the contract or subcontract, as the case may be.

(4) The charge on a security to which a subcontractor is entitled under subsection (1)(b) secures a payment mentioned in subsection (2)--

(a) only if the payment can not be satisfied by the charge mentioned in subsection (1)(a); and

(b) to the extent of the security's maximum possible value for securing performance of the contractor's, or superior contractor's, contract or subcontract, other than to the extent that the security is required to be used for securing, wholly or partly, the performance of the contract or subcontract.

(5) To remove any doubt, it is declared that, for a subcontractor's claim of charge relating to retention money only--

(a) the charge to which the subcontractor is entitled under subsection (1)(a) is not limited to merely a charge on retention money; and

(b) the charge to which the subcontractor is entitled under subsection (1)(b) is not limited to merely a charge on any security that has been exchanged for, or is held instead of, retention money.

(6) Money that is or is to become payable to a subcontractor for work done by the subcontractor under a subcontract, and the payment of which is secured under subsection (2)--

(a) includes money the payment of which is governed by a provision of the subcontract still to be complied with, including for example the following--

(i) a provision establishing a procedure for the certification of the amount, quality or value of work that has been performed;

(ii) a provision establishing a procedure for the resolution of a dispute about the amount, quality or value of work that has been performed; and

(b) does not include the following--

(i) damages for breach of contract or in tort;

(ii) an amount payable on the basis of an extra-contractual remedy, including, for example, as reasonable compensation for work done;

(iii) damages or other relief under another Act or an Act of another State or the Commonwealth, including damages or other relief under the Trade Practices Act 1974 (Cwlth).