Building & Construction Industry Security Of Payments Act
Powerful Legislation
For Construction Debt Recovery

Security Of Payment Act NSW Has Changed

As of 21 October 2019, building and construction contracts entered into will be subject to the most recent amendments to the Building & Construction Industry Security Of Payment Act 1999.

The significance of the changes for claimants is worth noting carefully.

The changes to the Building & Construction Industry Security Of Payment Act 1999 legislation have simplified reference dates. Reference dates are the time that a claimant is allowed to make a claim under the Security of Payment Act NSW. A claimant is now assured of at least one reference date per month and it is than last day of the month unless a particular date is stated in a contract.

No longer can a Claimant be deprived of making a claim under the Building & Construction Industry Security Of Payment Act 1999 legislation when a contract has been terminated.

However it is of the utmost importance to not that there is only one opportunity to do so after termination so it is crucial to ensure that the claim is well prepared, valid, and properly served. For help with this we direct you to our Security Of Payment Act NSW Specialists via our Online Claim Form.

The next most important change for Claimants is the reduction of the time allowed for Respondents to pay a payment claim served under the Building & Construction Industry Security Of Payment Act 1999 legislation. If the contract between the parties makes no express provision, or overly long payment terms, than the maximum time now allowed for payment under the Security Of Payment act NSW is 20 business days from the date that the payment claim was properly served on the respondent.

There has also been changes to how head contractors must manage monies held in trust under the Building & Construction Industry Security Of Payment Act 1999 legislation that provide further protection for claimants and add increased penalties for directors of head cantor companies who fail to meet their obligations under the Security Of Payment Act NSW.

Changes have also been made to allow claimants to withdraw adjudication applications when it is in their best. interests to do so.