Project No. 54

Commenced: 1974
Completed: 1974

The reference arose from sustained evidence of problems experienced by the building and construction industry primarily as a result of the practice of subcontracting. In a conventional building contract the client pays the head contractor, who engages other contractors (or subcontractors) to perform particular work or supply materials. Problems occur when there are insufficient funds available to pay subcontractors for work done or materials supplied, for example if the head contractor is declared insolvent. Liens legislation would permit subcontractors to register liens against the land on which building operations were being carried out, as security for payments due to them under their contracts. Charges legislation would enable subcontractors to charge money due from the owner to the builder, and the superior subcontractors.