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Construction Law News, March 2011

The Building & Construction Industry Security for Payments Act [BCISOP Act] has been recently amended to provide greater security for payment to sub contractors

The BCISOP Act [ss 26A-26E] now provides that a sub contractor who has had a claim against a Contractor under the Act adjudicated, can serve the claim for the payment awarded from the Principal Contractor. The Principal Contractor will be required to retain the amount for the claim from the funds due to be paid to the Contractor by the Principal Contractor. In order to have the benefit of this added security for payment, the sub contractor must first serve on the Principal Contractor a “Payment With holding Request” in the approved form with a statutory declaration stating that the sub contractor truly believes that the amount in the Request is owed by the Contractor to the sub contractor. If the Principal Contractor is no longer the Principal Contractor of the Contractor, and is not able to retain funds, then the principal Contractor must notify the sub contractor of this fact within 10 business days of receiving the Request.


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