NSWIn ForceAct
Contractors Debts Act 1997
5Unpaid persons can obtain payment from principal
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#### 5 Unpaid persons can obtain payment from principal
5 Unpaid persons can obtain payment from principal
> > (1) A person (the unpaid person) who is owed money for work carried out for or materials supplied to some other person (the defaulting contractor) can obtain payment of that money in accordance with this Act out of money that is payable or becomes payable to the defaulting contractor by some other person (the principal) for work or materials that the principal engaged the defaulting contractor to carry out or supply under a contract.
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> > (2) However, the unpaid person can obtain payment from the principal under this Act only if the work carried out or materials supplied by the unpaid person are, or are part of or incidental to, the work or materials that the principal engaged the defaulting contractor to carry out or supply.
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> Note—
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> A typical example of an unpaid person is a tradesperson, labourer or supplier (including a corporation).