Legal advice - Subcontractor specific
 

Do we have any lawyers, solicitors/legal advisers amongst us?

I'm a subcontractor, and have been for the past 4 years. I trade under my family trust (trading as blah blah blah pty ltd..).

My wife and I both subcontract through my family trust to multiple construction/oil and gas companies across Australia, and in general, these companies contract to the principal.
In this case we were contracting to company "A" on the construction of an Iron Ore mine south of Karratha. Company "A" is contracting to a construction/project management company (MCC Mining management) who have been employed by Citic Pacific Mining (basically the Chinese government) to manage their project.

Some of you who keep up the goings on in the industry my have read about the disputes up there.

Long story short, "company A" is refusing to pay an invoice. The refusal to pay is not anything to do with my quality of work, or a down fall on my behalf, but simply because their client is not paying them.

I believe "company A" when they say the will pay me the outstanding amount when they have the means.

What I'm looking for information/advice on is my position in regards to compensation for incurred cost due to not receiving payment on time (14th of the month according to the contract).
For example, bank fees for late/no payments etc.
Not only this, but what about thing like my credit rate and my repore with financial institutions and creditors.

Or is it a case of "You're a subby, that's why you get paid shit loads" or "that's what your income protection insurance is for..."

Thoughts, advice?

Cheers

matty pm sent

what contract are you contracted under?

Look in the annexures and look for a) who your contract is with (the principal) b) amounts for overdue payments.

Without knowing what contract you are under it is a bit hard to say "if" you are entitled to anything.

Also seeing as you are referring to ither parties is the the contract a construction managment arrangment where you are contracted to the project manager or Pacific Mining.

Basically the normal rate for overdue payments is 18% in construction or the rate set by the RBA for interest on overdue payments.

Dependant on the size of the contract it will prbably cost more to try and enforce the payment of interest on the overdue amount than the actual interest.

You need to sit down in front of your contract manager and come to a resolution.

If the person you are contracted to is a builder then you can persue via the BRB although your contract should also state on the annexures who will arbitrate in the case of dispute - normally the president of the institute of arbitrators.

Like I said what contract type and a copy of the annexures will give a greater insight.

go see my old work, theyre in freo, i f u want details PM me.
KB

Late payments will be covered in your contract. Usually with these c*nty type things you will find a couple of twists on words to the effect they don't need to pay you any interest on monies owed.

I'll assume it is a substantial amount of cash owed. Do what I've done in the past, go see a lawyer, write a nice letter to the company telling them of breach of contract for not paying or whatever your lawyer says to go for, give them a time period to respond/pay and when they don't serve a summons and go to arbitration.

Alternatively, a nice piece of 50NB Sch. 160 pipe might be more persuasive!

P.S. Go see a lawyer!

Thanks for the input all.

Can anyone recommend a (good) lawyer they have used in the past? Preferably for a situation similar to mine.
John?

Cheers

Depends what contract your under. We work a lot under AS2124 which simply put means if we have not been paid as the principal contractor you get nothing.

Brendon

I can recommend Jason DeSilva @ Murfett Legal in Subi, he's their Director of Commercial Litigation. 9388 3100. But advice won't come cheap!! Expect $350 an hour, his rates may have gone up since I last used him too.

[QUOTE=urabus;515508]Depends what contract your under. We work a lot under AS2124 which simply put means if we have not been paid as the principal contractor you get nothing.

Brendon[/QUOTE]

not true

[QUOTE=DEDLYWEPN;515521]I can recommend Jason DeSilva @ Murfett Legal in Subi, he's their Director of Commercial Litigation. 9388 3100. But advice won't come cheap!! Expect $350 an hour, his rates may have gone up since I last used him too.[/QUOTE]

+1 Can also recommend him, and warn of the co$t !

At least get an inital consultation from him so you know your options.