Building and Construction Industry Security of Payment Act 1999 No 46
26A Principal contractor can be required to retain money owed to respondent
(1) A claimant who has made an adjudication application for a payment claim can require a principal contractor for the claim to retain sufficient money to cover the claim out of money that is or becomes payable by the principal contractor to the respondent.(2) Such a requirement is made by serving on the principal contractor a request (a payment withholding request) in the form approved by the Secretary.(3) A payment withholding request must include a statement in writing by the claimant in the form of a statutory declaration declaring that the claimant genuinely believes that the amount of money claimed is owed by the respondent to the claimant.(4) A principal contractor for a claim is a person by whom money is or becomes payable to the respondent for work carried out or materials supplied by the respondent to the person as part of or incidental to the work or materials that the respondent engaged the claimant to carry out or supply.(5) A person who is served with a payment withholding request must, if the person is not (or is no longer) a principal contractor for the claim, give notice to that effect to the claimant concerned within 10 business days after receiving the request.Maximum penalty—50 penalty units in the case of a corporation or 10 penalty units in the case of an individual.Note.A person may no longer be a principal contractor as a result of money owed to the respondent having been paid by the person before the payment withholding request was served.