A new law
The Coalition Government wants to bring in the Construction Contractors Protection Bill to stop more building companies collapsing. The bill will:
* Outlaw the "pay if and when paid" clause in building contracts that saw Hartner not paying many subbies who had been working on its jobs.
* Establish a fast-track binding adjudication and disputes resolution process that would have enabled the argument between Hartner, the developers and the subbies, to have been resolved much faster.
* Establish a default regime under which subbies would get regular progress payments for work done, unlike many of the Hartner subbies who have had to wait up to two years for their money.
* Reintroduce a security interest or lien as a remedy for non-payment. This means that subbies will be able to put a lien on a property so it cannot be sold unless they are paid for their work.
* Get the courts to enforce an adjudicator's award and ensure that although appeals will be allowed, these will not delay payment.
The bill is modelled on NSW and British law which has been adapted to suit NZ.
A new construction law
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