Payment Claims

A contractor who does building work would be mad not to use payment claims. They can be very useful when used correctly.

The Construction Contracts Act 2002 (the “CCA”) was introduced because the New Zealand construction industry was behaving badly at the turn of the century. Payments weren’t flowing down the chain to where they were badly needed, and disputes took far too much time and money to resolve. So the Government followed the lead already taken by a number of other western countries, and passed the CCA to address these issues.

The main thrust of the CCA is to get payment to the contractors at the bottom of the pile promptly, and the two main ways it does that are payment claims and adjudication. All building contractors should take advantage of those two processes, because they are fast and relatively inexpensive compared to suing in the courts or going to arbitration.

Both of them result in money changing hands, but they aren’t necessarily intended to be the final say in the matter...

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