New South Wales Consolidated Acts

CONTRACTORS DEBTS ACT 1997 - SECT 5

5 Unpaid persons can obtain payment from principal

(1) A person (the
"unpaid person" ) who is owed money for work carried out for or materials supplied to some other person (the
"defaulting contractor" ) can obtain payment of that money in accordance with this Act out of money that is payable or becomes payable to the defaulting contractor by some other person (the
"principal" ) for work or materials that the principal engaged the defaulting contractor to carry out or supply under a contract.

(2) However, the unpaid person can obtain payment from the principal under this Act only if the work carried out or materials supplied by the unpaid person are, or are part of or incidental to, the work or materials that the principal engaged the defaulting contractor to carry out or supply.

Note : A typical example of an unpaid person is a tradesperson, labourer or supplier (including a corporation).