Security of Payment Legislation

security payment legislation contract terminated

The Building and Construction Security of Payment Amendment Act 2018 is now in force and the most recent round of amendments are effective from 21 October 2019. Notable amendments include the reintroduction of the statement that claims are made under the Act to all progress claims, whether the work is residential or commercial.

The notation:
‘This is a claim made under the Building and Construction Security of Payment Act 1999’
should be noted on all claims made under contracts entered into after 21 October 2019.
Contractors are encouraged to update their standard documents now so that they can take advantage of the SoPA.

Additionally, the introduction of a statutory right to contractors to make a payment claim following termination of a contract is welcomed.

The former position, established by the Courts over many years, had caused concern to contractors because of its practical restriction of their rights to make a claim in these circumstances.

Download the December 2019 Newsletter (PDF) »

 Are you having problems with the security of payments?  

Clare Peacock is an experienced construction lawyer working on Sydney’s Northern Beaches. Clare provides practical, cost-effective building approval advice to property owners, builders and strata managers. Services include residential building disputesbody corporate issues and strata building problems.

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