The purpose of the Security Of Payment Act NSW is to enable a person who, under a construction contract, has undertaken to carry out construction work or to supply related goods and services for a construction project in the state of New South Wales is entitled to receive a progress payment.
Preparation and service of a payment claim made under the Security Of Payment Act NSW is the first step in the process that leads to the adjudication of a payment dispute or non-payment of monies owed. A payment claim must meet all of the statutory requirements of the Act to be valid and must be duly served.
A person who has received a claim for payment endorsed as a payment claim made under the Security Of Payment Act NSW must respond with a valid “payment schedule” that meets all of the statutory requirements of the Act within 10 business days of receiving the payment claim. Failing to do so has serious consequences.
Adjudication is the final step in the Security Of Payment Act NSW process. The adjudication process requires each party to provide written submissions together with supporting evidence to an authorised nominating authority who in turn provides each party’s submissions to an adjudicator who makes a binding determination.
Start A Claim Now
Submit your claim details through our online portal to commence a claim for payment under the Security Of Payment Act NSW before the time allowed to do so runs out.
Get Help With A Payment Schedule
Submit the claim details through our online portal of the payment claim that you have received under the Security Of Payment Act NSW before the time allowed to do so runs out.
Apply For Adjudication
If you have served a payment claim, which was ignored, or you received a payment schedule in reply to a payment claim, start the adjudication process under the Security Of Payment Act NSW now.
Changes To Security Of Payment Act NSW For Residential Owner Occupiers
Building & Construction Contractors Can Now Make A Claim Under The Security Of Payment Act NSW Against Residential Home Owners
As of 1 March 2021 building and construction contractors in New South Wales can make a claim for their work under the Building And Construction Industry Security Of Payment Act 1999 (NSW) against owner occupiers for work carried out at the residence where the home owner resides or intends to reside.
To be precise, the Security Of Payment Act NSW now applies to building and construction contracts entered into on or after 1 March 2021.
This is a vital development for contractors dealing with disputes and slow payment, and non payment who have carried out building and construction work for people in the homes they reside in or intend to reside in.
There are some crucial steps and details to follow to ensure that your claim is validly made under the Building & Construction Industry Security Of Payment Act 1999 (NSW) so that you are successful at adjudication and we will help you navigate those steps and details to ensure you progress through the process with confidence.
COVID19 Pandemic Does Not Limit The Powers of Security Of Payment Act NSW
The world is in the grip of the most deadly pandemic in over 100years.
Now more that ever in these uncertain times the Security Of Payment Act NSW ensures claimants have a pathway to recovering monies they are owed for building and construction work in NSW.
The time for paying payment claims made under the Security Of Payment Act NSW has changed.
A progress payment to be made by a principal to a head contractor must now be paid within 15 working days of a payment claim being served.
A progress payment to be made to a subcontractor must now be paid within 20 working days of a payment claim being served.
If you are a subcontractor, avoiding termination of your contract means you can continue to continue to claim in accordance with your contract, and or the Security Of Payment Act NSW.
Termination of your contract may have dire consequences for recovering money you are owed for work you have completed.
After termination you are now limited to making one final payment claim.
Penalties for making false or misleading declarations or providing false or misleading information have increased significantly.
: Maximum penalty–
(a) in the case of a corporation–500 penalty units, or
(b) in the case of an individual–100 penalty units.
Other penalties also apply.
Building and construction contracts entered into on or after 21 October 2019 fall under the latest changes to the Security Of Payment Act NSW – this is good news for subcontractors cashflow
Monthly payment claims falling due for lodgment over the next few days need to be checked for validity to ensure they succeed at adjudication – if claims are invaild they may not be paid