Wednesday, October 04, 2006

Paradox of Contractor's Payment

Samy, what the fuck are you talking about?

Haven't received payment from govt, how to pay the subcontractors and suppliers?

Where the fuck does the contractor gets the money to pay others when they haven't received what is due to them?

Do you understand that there is often a "Pay-When-Paid" Clause in the contract between main contractors and subcontractors? You mean they must pay before being paid? Are you directing a statutory change in law that makes it ultra virus for the pay-when-paid clause? or, are you trying to tell us that the government will be brave to go against the law they had enacted, that is, the Contracts Act 1950?

Please, go and read Section 55 and 56 of the Contracts Act 1950! Understand it before you say something that is absolutely against the law you and your colleagues had made in Parliament.

What the contracts provide is that, in the event the main contractor failed to pay the nominated subcontractors (NSCs) upon receipt of their payment within a reasonable period, then the employer can make direct payment to the NSCs therafter. This does not include the domestic subcontractors who will have to accept the risk if they decided to contract.

You think Ministers or the government is above the law? that they can have wide discretionary and authority to act according to their whims and fancies and in total disregard to the law enacted?

Justice, OMG, where is justiciability?

3 comments:

moo_t said...

MR 10% is used to those practice. Remember thouse Touch N Go prepaid card? Shitty BNM, MITI talk nothing about the stored values (which can run up to hundreds of millions).

Helen said...

I don't know that. Thanks for enlightening me. :-)

Kenny Ng said...

But some of the main contractors never pay to their sub-contractor after they recieved the payment.