NSW: Supporting Statement by Head Contractor

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From 21 April 2014, where a Payment Claim is both:

  1. served on a “principal” to a “construction contract” by a “head contractor” and
  2. in relation to a construction contract (whether written or oral)

an additional supporting statement is required to be appended to the Payment Claim served on the respondent.

The supporting statement is known as the Schedule 1 Form. In the form, the head contractor must declare that subcontractors they have engaged have been paid all payments due and payable in relation to the construction work concerned. Amounts in dispute are excluded however the supporting statement must identify the subcontractor.

This requirement is to address the practice of falsely sworn statutory declarations about payments owed to subcontractors and is policed by officers of the NSW Department of Finances and Services. Knowingly providing false or misleading information in a supporting statement can lead to a large fine and/or three months imprisonment of an individual. However, the NSW Court of Appeal has recently held that service of a payment claim by a head contractor without a supporting statement does not invalidate the payment claim.

Click to download the Schedule 1 Form. (Note: This Schedule Form 1 is as provided by the NSW Government. It is in Word format and when downloaded can be found in your "Downloads" or similar folder).

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