Section sec.12 - Building Industry Fairness (Security of Payment) Act 2017 - When project trust required for a contract

sec.12When project trust required for a contract

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### sec.12 When project trust required for a contract This section applies to a contract entered into on or after the commencement of this section. A project trust is required for a contract if— the contract is eligible for a project trust under subdivision 2 ; and the contract is not exempted under subdivision 3 ; and the contracted party enters into a subcontract for all or part of the contracted work. The requirement starts on the first day a project trust is required under subsection (2) . The requirement continues until the project trust is dissolved under section 21 , regardless of any of the following changes— a variation, or any other amendment, of the contract; a change in the contract price; a change in the contracted work. If a project trust is required for a contract and a project trust is also required for a subcontract of the contract, separate project trusts are required for the contract and the subcontract. s 12 sub 2020 No. 24 s 63 amd 2017 No. 43 s 214 (sec.12-ssec.1) This section applies to a contract entered into on or after the commencement of this section. (sec.12-ssec.2) A project trust is required for a contract if— the contract is eligible for a project trust under subdivision 2 ; and the contract is not exempted under subdivision 3 ; and the contracted party enters into a subcontract for all or part of the contracted work. (sec.12-ssec.3) The requirement starts on the first day a project trust is required under subsection (2) . (sec.12-ssec.4) The requirement continues until the project trust is dissolved under section 21 , regardless of any of the following changes— a variation, or any other amendment, of the contract; a change in the contract price; a change in the contracted work. (sec.12-ssec.5) If a project trust is required for a contract and a project trust is also required for a subcontract of the contract, separate project trusts are required for the contract and the subcontract. - (a) the contract is eligible for a project trust under subdivision 2 ; and - (b) the contract is not exempted under subdivision 3 ; and - (c) the contracted party enters into a subcontract for all or part of the contracted work. - (a) a variation, or any other amendment, of the contract; - (b) a change in the contract price; - (c) a change in the contracted work.