Under recent changes to the Law subcontractors can now claim against principal contractors for payments due to them from contractors. If you are a subcontractor the changes effectively enable you to earmark money owed to a contractor from the principal contractor to secure the former’s liability for progress payments to you. It minimizes the risk of non payment due to a contractors insolvency. You must first lodge an adjudication application and then serve on the principal a payment withholding request. On receiving this the principal contractor must hold back from an money owed to the contractor an amount equal to that specified in the request pending a court decision.
This obligation extends to owners.