What The Security of Payment Act Means For You During The COVID19 Pandemic

The coronavirus has affected people’s lives around the entire globe, no country has been left untouched.

Australia is no exception.

The building and construction industry in Australia has been affected by COVID19 in many ways, some of those ways affecting the livelihoods of many subcontractors in quite serious ways.

As usual, but especially during this COVID19 pandemic, the security of payment act has been the difference between subcontractors getting paid for all of their work and only getting paid for some of their work or even worse not getting paid at all.

The Security Of Payment Act has even been improved over the past year or so to make it an even more effective tool for subcontractors to use to resolve payment disputes.

In New South Wales (NSW), the Building & Construction Industry Security Of Payment Act 1999 (NSW) legislation has been great improved by the removal of “reference dates”. What this means is that the argument that you don’t have a right to claim because a contract restricts the times that you can claim for your work no longer has any basis. Section 13 of the Building & Construction Industry Security Of Payment Act 1999 (NSW) now deals with when you can claim. Simply speaking, the Building & Construction Industry Security Of Payment Act 1999 (NSW) now says that you can claim once per month on the last day of the month during the works and up to 12 months after you have finished the works, and that if a contract specifies an earlier day of the month than you can use that day of the month instead of the last day of the month if you choose to, but you don’t have to. And even if a contract is terminated then you still have a right to make one last claim for payment after termination of the contract. This is all very important for subcontractors in these uncertain times of the COVID19 pandemic – the Building & Construction Industry Security Of Payment Act 1999 (NSW) gives you an even better pathway to payment than it ever has before decreasing stress surrounding payment disputes when there is the added uncertainty the coronavirus brings to our lives and businesses.

“The Security Of Payment Act is still
the best pathway to payment
for subcontractors by a country mile”

The Security Of Payment Act legislations for other states is still providing the same pathway to payment for subcontractors that it always has too.

Have no doubt that these state legislations, listed here below, provide the preferred pathway to payment for subcontractors in the building and construction industry, they are the best option bar none for subcontractors seeking payment for building and construction works and related goods and services.

BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 (NSW)

BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 2002 (VIC)

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 (QLD)

BUILDING AND CONSTRUCTION INDUSTRY (SECURITY OF PAYMENT) ACT 2009 (A.C.T.)

BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 2009 (SA)

BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 2009 (TAS)

What does all this mean for you during this time of the COVID19 pandemic?

The answer is simple, you can rely on the security of payment act legislation for your state as the best pathway to payment for your building and construction work despite all of the upheaval of this pandemic

In fact the security of payment act process is perfect where social distancing and lockdown restrictions are in place because no meetings are required and no appearances at hearings, tribunals, etc are required.

The security of payment act process, as usual, is a simple 2-3 step process conducted remotely.

The first step is the preparation and valid service of a valid payment claim. To start this process click here

The second step, only if required, that is, if the first step is ignored, is the preparation and valid service of a valid 2^nd Notice (not required at all in Queensland).

The third step is the preparation, lodgement and valid service of a valid adjudication application, if you are up to that stage click here

As set out earlier, the security of payment act is the preferred pathway to payment because it is the fasted, cheapest, most successful way to obtain a judgement against a debtor, and until you have a judgement against are debtor they can ignore your pleas for payment indefinitely. But once you have a judgement, you call the shots.

If you have any questions about any of the above detail please either forward them to us here

Or, call us between the hours of 8AM – 8PM on