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Contents (1999 - 46)
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Building and Construction Industry Security of Payment Act 1999 No 46
Current version for 27 June 2017 to date (accessed 24 July 2019 at 15:16)
Part 3 Division 2A Section 26A
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, within 10 business days after receiving the request, notify the claimant concerned if the person is not (or is no longer) a principal contractor for the claim.
Maximum penalty: 5 penalty units.
 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.