Cullen Group collapse
There has been a lot of speculation recently about how the building company Cullen Group collapsed. According to the Gold Coast Bulletin, there are a number of factors that may have lead to the Cullen Group collapse.
We have received enquiries from subcontractor’s affected by the Cullen Group collapse who are concerned about being paid. It’s possible in some circumstances for subcontractor’s to be paid even if a builder is placed into liquidation. It is important that you speak to us immediately to see whether or not you have the legal standing to serve a subcontractor’s charge. There are some legal requirements and strict time frames.
Subcontractor’s Charges Procedure
Broadly speaking, the procedure to serve a subcontractor’s charge is:
- By handing a charge to secure money payable (or money to be paid in the future to them) by the head contractor. The charge is given to the developer to redirect money otherwise payable to the head contractor to the subcontractor.
- A subcontractor must give a notice of charge to the developer and head contractor. The notice must specify the amount claimed and the particulars of the claim in relation to the work. It must also be certified by a prescribed “qualified person” (defined in the Act to include a registered architect, registered professional engineer, and quantity surveyor who is a member of the Australian Institute of Quantity Surveyors) and supported by a statutory declaration by the subcontractor. That prescribed person cannot be someone who has an interest (or be related to) the matter being claimed.
- It is important for subcontractors to realise that serving a notice of claim may require commencing court proceedings to enforce the charge if a developer or subcontractor disputes, or doesn’t comply with the procedures and time limits under the Act.
Boss Lawyers can help
For further information about subcontractor’s charges, and to determine whether or not you are eligible, we encourage you to review our article on subcontractor’s charges and contact one of our experienced building lawyers to assist you.
