Victorian Consolidated Legislation

Building and Construction Industry Security of Payment Act 2002 - SECT 36

Priority of assignments

36. Priority of assignments



(1) The priority of assignments under this Division is to be determined by the
order of service of notices of claim on the principal.

(2) All notices of claim in respect of debts owed by the same respondent that
are served on the principal within the period of 7 days after the first notice
of claim in respect of the respondent is served on the principal are taken to
be served at the same time and, accordingly, take equal priority.

(3) Despite section 35, the principal is not to make any payment to a claimant
who serves a notice of claim until that 7 day period has elapsed.



(4) If assignments take equal priority, the principal is to make the payments
by distributing the money payable between the claimants who have equal
priority pro rata in proportion to the amount of their respective certified
debts.

(5) The principal must continue to make those payments to each claimant until
whichever of the following first occurs-

   (a)  the principal receives a discharge notice, or discharge notices,
        indicating that each certified debt has been fully discharged; or

   (b)  the payments are no longer payable under the contract.