Getting payment claims right

A recent High Court decision (Bussell Construction Limited v Manchester Industrial Holdings Limited [2015] NZHC 858), highlights yet another ingredient for a valid payment claim.

It was found in this case that for a payment claim to be valid, it needs to specify ‘particular construction work’, which requires ‘some description’ of the work for which the payment claim relates.

In this case, the payment claim only included information relating to individual workmen, hourly rates and hours worked. This was found not to be an adequate description sufficient to identify the particular construction work in the circumstances of that case.

This meant that the payment claim was not valid; and that the other party was under no obligation to respond to it with a payment schedule.

So if you want your payment claim to serve their purpose, make sure you provide a reasonably full description of the particular work to which they relate.

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