An Act to provide for the recovery of debts owed to persons for work carried out or materials supplied and to repeal the Contractors’ Debts Act 1897.
This Act is the Contractors Debts Act 1997.
This Act commences on a day or days to be appointed by proclamation.
In this Act:
This Act applies to a debt that is owed partially for work carried out and partially for materials supplied in the same way as it applies to a debt that is owed solely for work carried out or solely for materials supplied.
A reference in this Act:
(a) to the carrying out of work includes a reference to construction work (within the meaning of the Building and Construction Industry Security of Payment Act 1999) carried out or undertaken to be carried out under a construction contract within the meaning of that Act, and
(b) to the supply of materials includes a reference to related goods and services (within the meaning of that Act) supplied or undertaken to be supplied under any such contract.
Notes included in this Act are explanatory notes and do not form part of this Act.
A person (the
However, the unpaid person can obtain payment from the principal under this Act only if the work carried out or materials supplied by the unpaid person are, or are part of or incidental to, the work or materials that the principal engaged the defaulting contractor to carry out or supply.
A typical example of an unpaid person is a tradesperson, labourer or supplier (including a corporation).
The following procedure must be followed to obtain payment of the money owed:
(a) firstly, a debt certificate must have been issued for the money owed (as provided for by section 7),
(b) secondly, the unpaid person must…