The NSW Government has made amendments to the Building and Construction Industry Security of Payment Act 1999 (the Act) to allow subcontractors to seek to freeze payments to non-paying contractors. These amendments commence on Monday 28 February 2011.

If a subcontractor applies for adjudication under the Act, they will now also be able to issue a payment withholding request to a principal contractor. As a result of that notification, the principal contractor is required to retain the amount of the claim from any money owed to the respondent (the contractor the payment claim has been made against).

To find out more about the NSW Government Circular and necessary forms to use click here