AUT LibraryAUT
View Item 
  •   Open Research
  • AUT Faculties
  • Faculty of Design and Creative Technologies (Te Ara Auaha)
  • School of Engineering, Computer and Mathematical Sciences - Te Kura Mātai Pūhanga, Rorohiko, Pāngarau
  • View Item
  •   Open Research
  • AUT Faculties
  • Faculty of Design and Creative Technologies (Te Ara Auaha)
  • School of Engineering, Computer and Mathematical Sciences - Te Kura Mātai Pūhanga, Rorohiko, Pāngarau
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Legal and Contractual Conditions: Implications on contructors' solvency

Ramachandra, T; Rotimi, JO
Thumbnail
View/Open
Legal and Contractual Conditions.pdf (87.62Kb)
Permanent link
http://hdl.handle.net/10292/5869
Metadata
Show full metadata
Abstract
Often legal and contractual conditions stipulate payment terms for contracts which could impact on constructors’ solvency. Evidence from different countries suggests that legal and contractual conditions have evolved or are evolving to cater for cash flow problems that could lead to insolvencies. However the review shows that in most countries payment terms specified in legislation are applicable only where contractual conditions have not been specified, while in some countries contract conditions become void if they violate legislative provisions. The UK Act requires fair payment regimes and adjudication to be in the contracts. Similarly, NSW and other Acts voids contract provisions that exclude payment rights.

Some of the legislation provides distinct features which could be considered upon contracting. For example the Queensland Act provides different payment due time for head contractors (within 25 business days of claim served) and subcontractors (within 15 business days of claim served). The Act of Western Australia and Northern Territory prohibits existing contract provisions of payment within 50 days of a served claim. Similarly, the latest Tasmanian Act prohibits the right to suspend the work if the party fails to make the adjudication within the stipulated time. The paper suggests that appropriate provisions of legislation need to be incorporated into contractual conditions since legislative provisions stand secondary to contract and available by default.
Keywords
Constructors’ solvency; Legislation; Contract conditions; Payment terms
Date
2011
Source
Published in: Modern Methods and Advances in Structural Engineering and Construction, pp.59 - 64.
Item Type
Conference Contribution
Publisher
Research Publishing Services
DOI
10.3850/978-981-08-7920-4_S1-CP09-cd
Publisher's Version
http://rpsonline.com.sg/proceedings/9789810879204/html/978-981-08-7920-4_S1-CP09.xml;%20http://www.isec-society.org/ISEC_06/Technical_Program.pdf
Rights Statement
NOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in (see Citation). The original publication is available at (see Publisher's Version).

Contact Us
  • Admin

Hosted by Tuwhera, an initiative of the Auckland University of Technology Library

 

 

Browse

Open ResearchTitlesAuthorsDateSchool of Engineering, Computer and Mathematical Sciences - Te Kura Mātai Pūhanga, Rorohiko, PāngarauTitlesAuthorsDate

Alternative metrics

 

Statistics

For this itemFor all Open Research

Share

 
Follow @AUT_SC

Contact Us
  • Admin

Hosted by Tuwhera, an initiative of the Auckland University of Technology Library