Victorian Consolidated Legislation

Building and Construction Industry Security of Payment Act 2002 - SECT 13

Effect of pay when paid provisions

13. Effect of pay when paid provisions



(1) A pay when paid provision of a construction contract has no effect in
relation to any payment for-

   (a)  construction work carried out or undertaken to be carried out under
        the contract; or



   (b)  related goods and services supplied or undertaken to be supplied under
        the contract.



(2) In this section-

money owing, in relation to a construction contract, means money owing for-

   (a)  construction work carried out under the contract; or

   (b)  related goods and services supplied under the contract;

pay when paid provision of a construction contract means a provision of the
contract-

   (a)  that makes the liability of one party (the first party) to pay money
        owing to another party (the second party) contingent on payment to the
        first party by a further party (the third party) of the whole or any
        part of that money; or

   (b)  that makes the due date for payment of money owing by the first party
        to the second party dependent on the date on which payment of the
        whole or any part of that money is made to the first party by the
        third party; or

   (c)  that otherwise makes the liability to pay money owing, or the due date
        for payment of money owing, contingent or dependent on the operation
        of another contract. __________________