Construction Contracts (Security of Payments) Act 2004
With the exception of one section, the Construction Contracts (Security of Payments) Act(“the Act”) and the Construction Contracts (Security of Payments) Regulations came into force on 1 July 2005. This means that it applies to construction contracts entered into from that date and which are covered by the Act.
On 1 August 2006, Section 66 of the Act came into force and as a consequence, the Workmen’s Liens Act was repealed.
The legislation covers construction contracts entered into after 1 July 2005, whether or not in writing, for construction work performed on a site in the NT. It also covers contracts for the supply of materials and services associated with construction projects.
The legislation provides an adjudication scheme for the resolution of disputes arising out of construction contracts, and also provides for minimum contract standards, by implying that certain conditions apply where the contract between the parties fails to cover the same issues in writing.
The Act also prohibits pay if and when paid clauses and where payment is due mote than 50 days after a payment claim, it deems payment to be due in 28 days.
The adjudication scheme created by the Act was amended by Part 4 the Community Justice Centre Act 2005 on 22 February 2006 to provide for the determination of small claims (under $10,000) through the Community Justice Centre for a fixed fee of $500.
The Construction Contracts Registrar
Guy Riley, a lawyer within the Department of Justice has been appointed by the Minister for Justice and Attorney-General as the Construction Contracts Registrar. His role under the legislation is to register adjudicators and maintain a public record of all determinations made by adjudicators. He also has a power to appoint adjudicators to determine disputes in circumstances where an appointer fails to do so within the prescribed time.
The Construction Contracts Registrar has to date approved the registration of the following registered adjudicators under the Act:
The following organisations are prescribed in the Regulations as appointers for the purposes of the Act
Act and Regulations