Construction Contracts Act 2002

50 Determination of liability of owner who is not respondent and approval of charging order over construction site owned by that owner

• (1) This section applies if—

  • (a) a claimant has referred to adjudication a dispute about whether an amount is payable by a respondent under a construction contract; and

  • (b) the claimant has sought, in the notice of adjudication,—

    • (i) a determination of the owner's liability under section 30(a); and

    • (ii) approval for the issue of a charging order in respect of the construction site under section 30(b); and

  • (c) the adjudicator has determined that the respondent—

    • (i) is liable to pay (whether in whole or in part) the amount claimed in the adjudication; and

    • (ii) is an associate of the owner.

  (2) If this section applies, the adjudicator must—

  • (a) determine that the owner is jointly and severally liable, with the respondent, to pay (whether in whole or in part) the amount claimed in the adjudication; and

  • (b) record in his or her determination that the owner is so liable and the amount of the owner's liability; and

  • (c) approve the issue of a charging order in respect of the construction site, and record that approval in his or her determination accordingly; and

  • (d) include in his or her determination sufficient particulars to identify the construction site to which the approval for the issue of a charging order relates.

  (3) The liability of an owner under subsection (2)(a) must not exceed the reasonable value of all of the construction work carried out on the construction site by, or on behalf of, the respondent (including construction work carried out by another party for, or on behalf of, the respondent), less all amounts actually paid by the owner in respect of that work.

  (4) To avoid doubt, the owner's liability—

  • (a) is satisfied to the extent that the respondent has paid the amount determined by the adjudicator under subsection (1)(c); or

  • (b) is discharged if the respondent's liability is set aside or otherwise discharged.