Building and Construction Security of Payment Regulation 2020
In this article, Northern Beaches construction lawyer, Clare Peacock, discusses changes made under the Building and Construction Security of Payment Regulation 2020.
On 1 September 2020 the Building and Construction Security of Payment Regulation 2020 (Regulation) commenced, bringing with it a raft of changes to the already heavily amended Building and Construction Security of Payment Act 1999 (SoPA).
Of particular relevance to my readers will be the amendment that removes the previous owner-occupier exemption from claims by builders under SoPA. Claims can now be made from 1 March 2021 and by builders against owners in relation to contracts for residential building work 2020 entered into after 1 September 2020. Prior to the amendment, sub-contractors were able to make SoPA claims against the builder, but the builder could not seek that same relief, leading in some cases to financial disadvantage.
The amendment benefits builders by offering them a quicker and cheaper alternative to recovery of unpaid fees at NCAT. The Regulation also introduces qualification and eligibility requirements for adjudicators to improve the quality of determinations.
Supporting statements are now only required for sub-contractors or suppliers directly engaged by the head contractor.
SoPA is highly prescriptive in terms of content and timing of claims, responses, and adjudication applications.
As a result, Builders and Owners alike should approach such claims and responses with care.
Need legal advice?
Clare Peacock, Principal solicitor at Northern Beaches Construction Lawyers, provides practical advice on the many issues that can and do arise from residential living, building works, construction contracts, and strata living. These regulations are a complex web of statutes, by-laws, regulations, case law and know-how, and involving a number of parties and their obligations. It is important, when these issues arise, to involve a lawyer who is familiar with the specific area of law. This is where Clare can help.
Clare Peacock
Principal Solicitor
Northern Beaches Construction Lawyers