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September 2017

 

SINGLE PAYMENT SCHEDULE CAN RESPOND TO MORE THAN ONE PAYMENT CLAIM

In a recent decision in Lot 8 Investments Limited v RPS Construction Limited [2017] NZHC 1400, the High Court has adopted a flexible approach to the payment claim/payment schedule regime under the Construction Contracts Act 2002 (Act) and what will be regarded as a complying document.

Lot 8 Investments Ltd (Lot 8) contracted with RPS Construction Ltd (RPS), to undertake certain building work. RPS issued two separate payment claims to Lot 8 for work done during different periods. Lot 8 disputed both payment claims in a single payment schedule. RPS argued that Lot 8 failed to comply with the payment regime under the CCA and made a statutory demand for the claimed amounts.

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Click here to read the article in BuildLaw 

 
 

April 2017

April 4th
Listen to John's Green interview on Radio Live discussing the building and renovation contracts for homeowners and the costs and quotes involved during the project. 

Click here to listen to the interview 

 



March 2017

THE RETENTION MONEY PROVISIONS OF THE CONSTRUCTION CONTRACTS AMENDMENT ACT 2015 COME INTO FORCE 31 MARCH

The provisions are intended to better protect retention money owed to contractors and subcontractors in the event of a business failure.

The Regulatory Systems (Commercial Matters) Amendment Act also comes into force today. It clarifies the amendments made in the Construction Contracts Amendment Act 2015 and introduces an alternative option to holding retention money on trust. The key points being:

            retention money provisions only apply to contracts entered into, or renewed, on or after 31 March 2017.
           employers or head contractors who choose to withhold retention money, have two options:

  1. hold retention money on trust in the form of cash or other liquid assets readily converted into cash – the default option; and
  2. obtain a financial instrument, such as insurance or a payment bond, to provide third-party protection to ensure payment of retention money.

No regulations in relation to retention money provisions under the Construction Contracts Act 2002 are currently proposed.
 


 
 

October 2016

CONSTRUCTIONS CONTRACTS ACT: Amendment Bill to Retentions Regime Section


Parliament, in introducing the Regulatory Systems (Commercial Matters) Amendment Bill this week, has now sought to clarify that the new retentions regime provided for in the Construction Contracts Amendment Act 2015 (due to come into force on 31 March 2017) will only apply to contracts entered into or renewed on or after 31 March 2017, unless the parties agree.

Read More: Amendment Bill to Retentions Regime Section - Construction Contracts Amendment Act 2015

An Authorised Nominating Authority
under section 65 of the Construction Contracts Act 2002