Security of Payment Act Claim (Claimant) - Contractors Debts Act Debt Attachment

Jurisdiction: New South Wales, Australia. The application is made to the court that entered the judgment (Local, District, or Supreme Court) under the Contractors Debts Act 1997 (NSW).

The Process at a Glance: The subcontractor applies to the court for a Debt Certificate. An Affidavit must be prepared confirming the judgment remains unpaid. The court issues the Debt Certificate. The subcontractor serves the Debt Certificate along with a Notice of Claim on the principal contractor. The debt certificate directs the principal to pay the subcontractor's judgment debt from any money that may be due to the contractor. If the principal does not pay, get advice on recovery against the principal under the Act.

Key Legislation and Case Law: Contractors Debts Act 1997 (NSW) - s 7 (debt certificate, which the claimant asks the court to issue when the judgment is obtained; it directs the principal to pay the judgment debt from money due to the head contractor). Note: under section 26E of SOPA a respondent to an adjudication application may be required to give information about the principal contractor when an adjudicator requests it, and there are penalties for failing to do so; the NSW Government guidance describes this as helping the claimant serve a payment withholding request (section 26A). Where a payment withholding request has been served, the principal contractor must keep the money until, among other events, the claimant serves a notice of claim under the Contractors Debts Act 1997 or 20 business days pass after a copy of the adjudication determination is served on the principal contractor (section 26B).

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