GOVERNMENT CONTRACTS.

New Zealand Herald, Volume XXVIII, Issue 8531, 3 April 1891, Page 5

GOVERNMENT CONTRACTS.

Wellington, Thursday. The following is tho proposed new clause to stand as sub-section (2) in clause 18 of tho general conditions of Government contracts : (2) If the contractor shall sub-let any part of the works, or enter into any contract for tho execution of such works, or any part thereof (herein referred to as a " sub-contract"), without such consent as aforesaid, every such sub-oontract shall bo void and of no effect, and shall be deemed to be a wilful broach of the contract, and may be dealt with accordingly by the Minister. Under those conditions it is provided that the Minister may, ato his discretion (and notwithstanding the exercise by him of all or any of the powers conferred upon him by these conditions) pay to any such sub-contractor the whole or such part of the money as may appear to bo due to him under the sub-contract, and as if the sub-contractor were a lawful assignee of the contractor in respect of such moneys. Such payment shall bo made to the sub-contractor out of any moneys then due or accruing due to the contractor, and shall be taken or deemed to bo a payment to such contractor under the contract. The powers conferred upon the Minister by this condition may be exercised by him from time to time as occasion requires upon such evidence as he deems sufficient, and upon such terms and conditions as the Minister may in any case prescribe ; but nothing heroin shall be deemed to interfere with the rights or claims of any person or persons under the " Workmen's Wages Act, 1884," or under any valid absolute assignment of any moneys due or to become due under the contract, and in either Of which cases proceedings may have been taken or notice given ill the manner required by law. . s