What is a payment claim under the Construction Contracts Act?

General information from Lawmateanz

New Zealand's Construction Contracts Act 2002 sets rules for payments on building jobs. A contractor can send a 'payment claim' for work done, and it must contain certain information and an explanation of the payer's rights.

If you disagree with a payment claim, you need to respond with a 'payment schedule' saying how much you'll pay and why, within the time set by your contract, or within 20 working days if the contract doesn't say.

If you don't respond in time, you can become liable to pay the full amount claimed, which the contractor can recover as a debt.

Disputes can be referred to adjudication, a quick process under the Act. Because the deadlines are strict, get advice quickly if you receive a payment claim you disagree with.

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