CCA 2004 1
CCA 2004 2

Building a house or renovating can be stressful for your clients. If you look at Myers Briggs personality types, some types clash at times . Building can be one of those times. You are engaged to achieve a result so do just that. You have chosen your team on their ability to achieve a result and it is possible the types you get on well with may also clash with your client.

Beware!

Construction Contracts Act 2004

Construction Contracts form a significant part of the Australian Economy. As well as the $7 billion spent annually on building disputes there is a black hole of money just frozen arguing about payments which should flow into the economy. Needless extended overdrafts and credit checks. Furthermore a recent report in the West Australian featured a Landmark deal between the Federal and State Governments in the allocation of $2.3 billion for roads and rail. This in turn is expected to create 6,000 new jobs. A similar effect could come from the release of builder’s working capital stuck in building disputes.

Free Flow of Payment

The Construction Contracts Act 2004 sets out to do just that. It is a stand alone piece of legislation dealing with payments only, and forms part of any construction contract. Dispute resolution mechanisms like the SAT and the Courts remain in place. The CCA 2004 legislation provides for payment to the builder of moneys due under the contract. Work proceeds and the resolution of differences are concurrent. Dispute Resolution can become a Dickensian Bleak House saga. The completion of any building project is essential for the free flow of money to the economy. Builders can then pay their suppliers, their sub-contractors and also their working capital is free to take on other work. This in turn keeps the wheels of industry turning. Stalled projects hurt everyone. Disputing parties can resolve their differences at their leisure without any burden on the working man.

No builder should have debtors more than 14 days past the due date.

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We at DRS can complete the serving of notices under the CCA 2004 legislation to the nominating body, the client and consequently the adjudicator.

We’ll also deal with the follow up counter offer or any workmanship matters that may arise.

It’s a straight forward process as long as the other party plays fair but I suppose if that were the case this process wouldn’t ne necessary.

Anyway it is important that outstanding payments are made and the job progresses as normal.

The adjudication process is quick and essential.

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Perth

Karratha