In NSW, payment schedules must comply with the Security of Payment Act 1999 (NSW). The Act outlines specific requirements for payment schedules in NSW, which may differ from other states and territories in Australia.
One key requirement is that the construction payment schedule must be provided within 10 business days after receiving a payment claim. If the payment schedule is not provided within this timeframe, the claimant may be entitled to recover the full amount claimed.
In addition to this, payment schedules in NSW must:
- Identify the payment claim to which it relates
- Indicate the amount of payment that the respondent proposes to make
- State the respondent’s reasons for withholding payment
It is important to note that failure to comply with these legal requirements can have serious consequences. If a payment schedule is not served within the required timeframe, the respondent may become liable to pay the claimed amount in full. Additionally, failure to include all required information in the payment schedule may render it invalid, leaving the respondent exposed to legal action.
Therefore, it is important to ensure that construction payment schedules in NSW are prepared in accordance with the legal requirements set out in the Security of Payment Act 1999 (NSW).