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BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 - SECT 26A
Principal contractor can be required to retain money owed to respondent
(1) A claimant who has made an adjudication application for a payment claim
can require a principal contractor for the claim to retain sufficient money to
cover the claim out of money that is or becomes payable by the
principal contractor to the respondent.
(2) Such a requirement is made by
serving on the principal contractor a request (a
"payment withholding request" ) in the form approved by the Secretary.
(3) A
payment withholding request must include a statement in writing by the
claimant in the form of a statutory declaration declaring that the claimant
genuinely believes that the amount of money claimed is owed by the respondent
to the claimant.
(4) A
"principal contractor" for a claim is a person by whom money is or becomes
payable to the respondent for work carried out or materials supplied by the
respondent to the person as part of or incidental to the work or materials
that the respondent engaged the claimant to carry out or supply.
(5) A person
who is served with a payment withholding request must, if the person is not
(or is no longer) a principal contractor for the claim, give notice to that
effect to the claimant concerned within 10 business days after receiving the
request. : Maximum penalty--50 penalty units in the case of a corporation or
10 penalty units in the case of an individual.
Note : A person may no longer
be a principal contractor as a result of money owed to the respondent having
been paid by the person before the payment withholding request was served.
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