Change text size:   Increase font size   Reduce font size  |   Print page:   Print this page
  |   Contact us   
 
nosection
English
/Factsheet_print/Tradespeople/Building_industry_essentials/Security_of_payment/_Make_a_payment_withholding_request.pdf
/mobile0c9a66/common_res/global/images/pdf.gif
Standard fact sheet.

Make a payment withholding request 

What is a payment withholding request? 

A payment withholding request from a claimant directs a principal contractor to retain sufficient money to cover a claim out of money that is or will be payable by the principal contractor to the respondent.

Top of page

Who can serve a payment withholding request? 

Only a claimant who has made an adjudication application can serve a payment withholding request.

Top of page

How do I know if I am a principal contractor? 

The principal contractor is the person above the respondent in the chain of contracts who engaged the respondent to do work, which the respondent then subcontracted to the claimant.

Top of page

What should I do if I am a principal contractor and I receive a payment withholding request? 

You will need to make sure you act on any payment withholding requests that you receive. This means that you must retain unpaid money to the value of the amount claimed until:

  • the adjudication application is withdrawn;
  • the respondent pays the claim;
  • the claimant serves a notice of claim on the principal contractor under the Contractors Debts Act 1997; or
  • 20 business days after a copy of the adjudication determination is served on the principal contractor by the claimant.

If you do not owe any money to the respondent, you are not required to retain the amount claimed in the payment withholding request. You must notify the claimant of that fact within 10 business days of receiving the request. There are penalties for principal contractors if they do not comply with these requirements.

Top of page

What should I do if I am a respondent? 

If you are a respondent you may be required to provide information about the principal contractor to the adjudicator to help the claimant serve a payment withholding request. There are penalties for respondents if they fail to provide this information when requested by an adjudicator.

Top of page

How should claimants issue a payment withholding request? 

If you want to serve a payment withholding request on a principal contractor, you should:

  • have applied for adjudication
  • complete the Payment withholding request form and a Statutory declaration, confirming that you genuinely believe that the amount of money claimed is owed by the respondent
  • send these forms and a copy of the adjudication application to the principal contractor.

Once the adjudication determination has been made you are also responsible for providing a copy of the determination to the principal contractor within 5 business days of receiving the determination. If you withdraw your adjudication application you must also advise the principal contractor within 5 business days of withdrawing the application. There are penalties for claimants if they make a false statutory declaration, or fail to notify the principal contractor of the adjudication determination or of the withdrawal of an adjudication application.

Top of page

Get a free copy of Adobe Acrobat Reader so you can access PDF versions of our information.