Legal Project Management Plan & Checklist
Purpose of this Guide: Use this fork when your client is a subcontractor who has performed work under a subcontract and is owed money by the head contractor, and the head contractor has been paid by the principal. A Subcontractors' Charge is a statutory charge over money payable by the principal to the head contractor that allows the subcontractor to access those funds directly, bypassing the head contractor's insolvency risk.
Queensland, Australia. The Subcontractors' Charge is available under the Subcontractors' Charges Act 1974 (Qld) as an alternative or parallel remedy to adjudication.
The Process at a Glance: The process begins by confirming the statutory preconditions: the subcontractor must have performed work or supplied materials under a subcontract, the head contractor must owe money to the subcontractor, and the principal must owe or be likely to owe money to the head contractor. A Claim of Charge must be served on the principal before or within 3 months after completion of the work. The principal is then required to retain from the amount payable to the head contractor a sum equal to the amount charged. The head contractor is notified of the charge. If the head contractor disputes the charge, the matter must be adjudicated in the District Court or Magistrates Court. If the charge is not disputed and the debt is established, the principal pays the subcontractor directly from the retained amount, discharging the subcontractor's claim.
Key Legislation and Case Law: Subcontractors' Charges Act 1974 (Qld) - s 5 (right to claim a charge), s 7 (Claim of Charge - must be served on the principal within 3 months after completing the subcontract work), s 9 (principal's obligation to retain funds upon receiving a Claim of Charge), s 17 (dispute resolution - proceedings in District Court or Magistrates Court if charge is disputed). The charge attaches to money payable by the principal to the head contractor, so the remedy is only available where the principal has not yet paid the head contractor in full. This remedy runs independently of BIF Act adjudication and both can be pursued simultaneously. Critically, if the principal ignores a valid Claim of Charge and pays the head contractor, the principal may become personally liable to the subcontractor for the amount of the charge under s 9.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Security of Payment Adjudication (Claimant) - Subcontractors' Charge Alternative Track matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for COMMERCIAL_LAW cases, outlining the standard DISPUTE_LITIGATION process. Utilize these tracking templates to manage your legal cases efficiently.
Confirm subcontractor eligibility, map contract chain, and verify the 3-month deadline from practical completion under s 119.
Draft Form 122 with qualified person certification, serve on Principal and Contractor within 3 months of completion.
Monitor Contractor response Form 123 and verify if debt is admitted or disputed within 10 business days.
Commence court proceedings within 1 month of serving charge notice to enforce the charge and prevent lapsing under s 125.
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