Contractors Debts Act 1997 (NSW)

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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.

Part 1Preliminary1Name of Act

This Act is the Contractors Debts Act 1997.

2Commencement

This Act commences on a day or days to be appointed by proclamation.

3Definitions(1)

In this Act:

approved form means a form approved by the Minister.

certified debt, in relation to an unpaid person, means the amount specified in a debt certificate as being owed to the unpaid person.

contract means an express or implied contract, whether or not in writing.

debt certificate means a certificate issued under section 7.

defaulting contractor—see section 5.

discharge notice means a notice referred to in section 13.

notice of claim means a notice referred to in section 6.

principal—see section 5.

unpaid person—see section 5.

(2)

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.

(3)

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.

4Notes

Notes included in this Act are explanatory notes and do not form part of this Act.

Part 2Obtaining payment of debt5Unpaid persons can obtain payment from principal(1)

A person (the unpaid person) who is owed money for work carried out for or materials supplied to some other person (the defaulting contractor) can obtain payment of that money in accordance with this Act out of money that is payable or becomes payable to the defaulting contractor by some other person (the principal) for work or materials that the principal engaged the defaulting contractor to carry out or supply under a contract.

(2)

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.

Note—

A typical example of an unpaid person is a tradesperson, labourer or supplier (including a corporation).

6Procedure for obtaining payment(1)

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…

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.