A leading Northern
Territory lawyer says builders no longer need to feel powerless against
developers when construction disputes arise.
Alistair Wyvill SC
of William Forster Chambers said builders often feel they have to discount their
invoices to get paid, even when they believe there’s no foundation to the
developer’s complaint.
The Darwin barrister
said subcontractors and suppliers also take this approach when owed money by
contractors. They feel that their only other option is an expensive and drawn
out court case.
Mr Wyvill says that builders
and subcontractors do have a viable alternative to costly court proceedings by
using adjudications under the Construction Contract (Security of Payments) Act.
“Adjudication is a
fast and cost effective way of forcing payment under construction contracts. It
normally takes about four weeks and if successful results in a judgment
enforceable by the courts,” Mr Wyvill said
“There is no limit
to the amount which can be awarded. It is the big stick that every builder or
supplier should know about.”
The Security of
Payments legislation is in place to promote the use of good payment practices
and to help resolve building contract disputes without drawn out and costly
court cases.
Under the process an
independent and qualified professional reviews each party’s case and determines the competing claims on a
strict timetable.
Determinations
cannot be appealed and if not complied with can result in companies being
subject to a substantial court judgment and even winding-up proceedings.
“It is highly likely
that the Northern Territory will see an increase in construction industry
contract payment disputes in the expected building and mining boom,” Mr Wyvill
said.
“It is vital for
members of the construction industry to understand this legislation, be aware
of the opportunities it creates and but also to understand its pitfalls.”
William Forster
Chambers will be conducting a seminar on Security of Payments Adjudication
directed to builders and developers on Tuesday 27 November 2012 between 4.30pm
and 6.00pm at William Forster Chambers, 26 Harry Chan Avenue, Darwin.
For further
information go to www.williamforster.com or call Megan
White on 89824700.
