Security of Payment Act: A quick rundown
Under the Building and Construction Industry Security of Payment Act 1999 (NSW), a.k.a. Security of Payment Act (NSW), you may claim progress payments by simply serving a Payment Claim on the person who owes you (let’s call them the “Respondent”).
The Respondent may then either pay your claimed amount on the due date (in your construction contract), or serve you a Payment Schedule, if they propose to pay a different (usually, lesser) amount.
How Can Payment Be Enforced?
If you disagree with their proposed payment amount (“scheduled payment,”), or if they refuse to pay the amount they promised, or if they neither serve a Payment Schedule nor pay your claimed amount, you need not worry.
The Security of Payment Act (NSW) gives you options for enforcing payment. These are:
IMPORTANT! : Adjudication Timelines
In other words, in the third scenario:
You may also opt to bring the collection case to court instead of going through adjudication. This would take longer and entail a greater expense, though.