Contractor / Subcontractor Agreement Disputes:

Many industries involve the engagement of contractors and subcontractors and such as construction, transportation, engineering, telecommunications and distribution. Many disputes may arise from the rights, liabilities, duties and obligations of contractors and sub-contractors.

Often in many contractor/ subcontractor agreements there will be a dispute resolution or dispute settlement clause that governs the actions for each party to take in the event a dispute or disagreement arises. At times, these clauses stipulate that any alleged breach by notified in writing, with a stipulated time frame for parties to attempt to resolve the matter. If no resolution is arrived, there may be a mediation and/or arbitration clause where a 3^rd party is empowered to hear the dispute between the parties and make a determination or recommendation that may or may not be binding.

Disputes can arise from liabilities when goods are damaged or lost, a consumer or customer has a complaint or when employees make a claim for remuneration, entitlements or redundancy. These claims may involve insurance, a disagreement on who has the liability, who is entitled to make a claim and how insurance proceeds are to be distributed.

Disputes can also arise for alleged breach of contract, such as claims for unpaid remuneration, non-performance of obligations. A subcontractor may have the remedy from the Contractors Debtors Act to present a claim for payment and obtain an Adjudication Determination, which can then be presented to the Principal for payment effectively by passing the contractor to obtain payment. The subcontractor must present a debt certificate and a notice of claim to the principal who will pay the unpaid amount and the subcontractor needs to sign a discharge notice to indicate that the debt has been fully discharged.

Contractors and subcontractors may enter into a dispute about alleged rescission or termination of contract. One party may take action that constitutes breach by the non performance of their obligations or duties or anticipatory breach where an action is taken which renders it no longer possible for them to fulfil their obligations under contract.  Similarly there may be termination or repudiation of an agreement

There may also be an industry code of conduct that applies that may create obligations between the parties. These may include obligations to act in good faith, proper practices and rules of behaviour which may or may not be binding.

Some contracting arrangements may actually be employment arrangements and in this case the contractor is in effect the employer. This may give rise to disputes regarding the obligations or the employer and the entitlements of the employee which may include leave entitlements, superannuation and benefits such as redundancy.

The Employment Lawyers at Navado Lawyers & Solicitors have advised on Employment law for many years and deliver intelligent, expert advice on this area of law. If you need further legal advice on your employment law matter, you may book an appointment with us by telephone or by email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.