This is not necessarily the case, as there are tools to reduce your financial commitment when you work as a subcontractor. The CCA gives subcontractors a “fast-track” mechanism to be paid for their work. However, if your ordermaster goes bankrupt without paying, you will always end up in the queue of unsecured creditors, in the hope that there will be money left after the liquidator has sorted the rubble. In July, seminars are held in Christchurch, Auckland and Wellington to explain how to use the new SA-2009 subcontractor agreement. The SC1 master builders subcontract has been the standard construction subcontract for many years in which it has been subject to numerous revisions and used in various forms. A working group made up of representatives of the Federation of Master Builders and the Federation of Contract Contractors specialists has been formed to develop a new standard form of subcontracting. Despite amendments to the Construction Contracts Act (CCA), which means that as of March 31, 2017, the withholding pay will have to be held by a “trusting” principal contractor, there is still no guarantee that subcontractors will recover their deductions if they have not been properly accounted for or issued by the principal contractor to avoid insolvency. In any case, your money is always engaged in their business, not helping you to pour in money. The SA – 2009 subcontracting agreement (and other standard contracts) allows subcontractors to grant a loan instead of stocking. The resulting “Subcontract Agreement SA-2009” was published. In November 2009, it received ministerial support and Master Builders withdrew SC1 in favour of SA-2009. The new 34ts document is simple and easy to use, but like any new legal document, it must be understood to be used properly.
It should benefit all participants in the outsourcing industry by reducing administrative costs, reducing disputes and improving relationships. When subcontractors begin to provide bonds rather than cash deductions, their financial risk in the event of insolvency of the principal contractors is significantly reduced, both as individuals and as a sector. Christchurch Monday, July 26, 2010 Wellington Tuesday, July 27, 2010 Auckland July 29, 2010 The group included senior executives from Hawkins Construction, Fletcher Construction, Mainzeal Construction and Foster Construction, as well as representatives from Electrical, Precast, Reinforcing and Roofing Subcontracting Industries. It is a very simple insurance that guarantees to pay 75% of the money owed to you by a principal contractor if it becomes insolvent. It has a 30-day period and does not apply to deductions or contracts you have already started. Premiums are very affordable and you can choose covering 25,000 or 50,000 dollars.