Security Of Payment Act NSW
Protecting building & construction contractors in NSW
Key topics
Construction Contracts
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.
Payment Claims
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.
Payment Schedules
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
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.
Quick Links
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.
Payment Claim Being Ignored
If you have served a payment claim, and it has been ignored, before you can start the adjudication process under the Security Of Payment Act NSW you need to serve a 2nd Notice.
Apply For Adjudication
If you have served a payment claim, which was ignored, you have served a 2nd Notice, or you received a payment schedule in reply to a payment claim or 2nd Notice, start the adjudication process under the Security Of Payment Act NSW now.
Recovering An Adjudicated Amount
If an adjudicator has awarded you an amount of money in a determination made under the Security Of Payment Act NSW the respondent has 5 business days to pay. If the respondent fails to pay the adjudicated amount you are entitled to enforce the determination.
Payment Terms
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.
Contract Termination
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.
False Declarations
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.
What’s Happening
With a number of building companies failing this year it is timely to learn how to prepare Payment Claims made under the Security Of Payment Act NSW and serve them at the right time
As interest rates start to bite be sure to keep your contract admin up to date to ensure disputes are resolved easily using the Building & Construction Industry Security Of Payment Act 1999 NSW.
Building & construction is back full swing for 2022.Keep up to date with Security Of Payment Act NSW changes here. Read contracts carefully and make sure they are signed by both parties
It’s the time of year where everyone’s cashflow is more important than ever leading up to the Christmas break. Don’t ignore Payment Claims served under Security Of Payment Act NSW
As of 1 March 2021 residential building contracts where the homeowner resides in the home are now subject to the Building & Construction Industry Security Of Payment Act 1999 NSW.
Building & construction is back full swing now in 2021 and there are some big changes coming for the industry next month. Keep up to date with Security Of Payment Act NSW changes here.
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
Security of Payment Act NSW monthly payment claims should also include all previous unpaid amounts – in other words the total of all work completed contract work that hasn’t been paid
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