Victorian Consolidated Legislation

Building and Construction Industry Security of Payment Act 2002 - SECT 12A

Lien in respect of unpaid progress payment

12A. Lien in respect of unpaid progress payment



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

(2) The claimant must serve a notice in the prescribed form on the respondent
before exercising a lien under subsection (1).

(3) A lien under subsection (1) is extinguished on the claimant receiving the
progress payment.

(4) Any lien or charge over the unfixed plant or materials existing before the
date on which the progress payment becomes due and payable takes priority over
a lien under subsection (1).

(5) Subsection (1) does not confer on the claimant any right against a third
party who is the owner of the unfixed plant or materials.