Common building and construction disputes
Another concern in the building and construction industry is security of payments. The use of multiple contracts to develop projects or buildings creates a situation where one failed contract has the potential to have a domino effect on other related contracts.
For example, an owner or developer fails to pay a building contractor who then in turn fails to pay sub-contractors and so on.
In an attempt to reduce this type of risk, those in the building and construction industry rely on ‘progress payments’. However for many reasons disputes over entitlement to progress payments often arise. In these types of disputes it may be useful to consider pursuing adjudication under the Building and Construction Industry Payments Act 2004 (‘BCIPA’).
BCIPA can be a useful tool to ensure progress payments in relation to construction work are paid on time. BCIPA can be utilised by:
- Contractors against principals/developers;
- Contractors against owner-builders;
- Subcontractors against contractors;
- Suppliers against clients;
- Plant and equipment hirers against clients; and
- Consultants against clients.