Project No. 82

Commenced: 1985
Completed: 1998

The reference arose from sustained evidence of problems experienced by the building and construction industry 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.