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BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 - SECT 26B
Obligation of principal contractor to retain money owed to respondent
26B Obligation of principal contractor to retain money owed to respondent
(1) A principal contractor who has been served with a payment withholding
request must retain, out of money owed to the respondent, the amount of money
to which the payment claim relates (or the amount owed by the principal
contractor to the respondent if that amount is less than the amount to which
the payment claim relates).
(2) The amount is only required to be retained
out of money that is or becomes payable by the principal contractor to the
respondent for work carried out or materials supplied by the respondent to the
principal contractor as part of or incidental to the work or materials that
the respondent engaged the claimant to carry out or supply.
(3) The
obligation to retain money under this section remains in force only until
whichever of the following happens first-- (a) the adjudication application
for the payment claim is withdrawn and the claimant does not make a new
adjudication application in accordance with section 26,
(a1) the adjudicator
fails to determine the adjudication application in accordance with section 21
and the claimant does not make a new adjudication application in accordance
with section 26,
(b) the respondent pays to the claimant the amount claimed
to be due under the payment claim,
(c) the claimant serves a notice of claim
on the principal contractor for the purposes of section 6 of the
Contractors Debts Act 1997 in respect of the payment claim,
(d) a period of
20 business days elapses after a copy of the adjudicator's determination of
the adjudication application is served on the principal contractor.
(4) A
part payment of the amount claimed to be due under the payment claim removes
the obligation under this section to retain money to the extent of the
payment.
(5) When the claimant's adjudication application is determined, the
claimant must serve a copy of the adjudicator's determination on the principal
contractor within 5 business days after the adjudicator's determination is
served on the claimant. : Maximum penalty--50 penalty units in the case of a
corporation or 10 penalty units in the case of an individual.
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