A collateral undertaking by a head contractor to pay a sub-subcontractor if the subcontractor does not pay, where the sub-subcontractor's contract with the subcontractor remains on foot, constitutes a guarantee of payment of an amount owing within s 3(3)(c)(ii) of the Building and Construction Industry Payments Act 2004 (Qld), excluding the head contractor's undertaking from the operation of the Act. The Payments Act does not apply to work performed prior to the making of a construction contract, as such work was not carried out 'under the contract'.
The full text is available to signed-in members, including the 16 later cases that cite this judgment.
2 of the 16 citing cases carry a classified treatment. How each court treated it is available to signed-in members.