The Act is designed to enforce and protect the rights of builders while providing construction services and supplying goods and materials to their clients. It also promotes a fair and methodical way for contractors to claim the work they had done and for clients to respond to the payment claims.
Non-compliance to the Security of Payment Act may lead to adjudications that can very much affect both parties.
The building and construction industry is known to make up about 20% of all insolvencies. One-fifth is a lot since there may be about 100 different industries.
The Security of Payment Act ensures that contractors and subcontractors get their rightful payment after rendering construction services. It enforces the contractor’s or subcontractor’s rights to progress payments and provides a fast debt recovery process.
Security of Payment Act (or Building and Construction Industry Security of Payment Act 1999 (NSW)) is legislation in New South Wales (with similar legislation in other states and territories in Australia) that assist subcontractors and suppliers in the building and construction industry to receive progress payment from builders and/or principals.
Many small subcontractors and suppliers do not get paid for their work. Because of these, they cannot survive financially. Furthermore, most of these subcontractors and suppliers are small, family-run businesses, financial problems affect not only their businesses or companies, but also their families.
The first objective ensures the benefit of anyone who carries out construction work or supplies goods and materials to be rightfully given progress payments and recover debts.
The second objective enforces the legal right, or privilege, of the person carrying out construction work to progress payments, whether or not it was stated in the contract.
(a) the making of a payment claim by the person claiming payment, and
(b) the provision of a payment schedule by the person by whom the payment is payable, and
(c) the referral of any disputed claim to an adjudicator for determination, and
(d) the payment of the progress payment so determined.
The third objective enumerates certain procedures that validate a party’s application to recover debts or progress payments: (a) A payment claim must be issued; (b) A payment schedule must be presented; (c) The referral of a disputed claim to an adjudicator and; (d) The determined amount to be paid.
(a) any other entitlement that a claimant may have under a construction contract, or
(b) any other remedy that a claimant may have for recovering any such other entitlement.
The fourth objective simply states that the Act does not limit other entitlements and remedies that shall be granted to the contractor or the person carrying out the construction work.
1. Get paid for all the construction work or services that were carried out.
2. Enables them to challenge expenses or back charges.
3. Claim their possessions.
4. Helps deal with allegations of defective work.
Building and Construction Lawyers
NCAT, Local Court, District Court, and Supreme Court matters
Contracts Specialist has vast knowledge and experience in construction contracts and disputes, including on the application of the Security of Payment Act. Because we have been doing this for a long time, we are able to assist clients quickly and provide specialist advice. We are knowledgeable in all aspects of construction law and compliance.
Our Security of Payments lawyer will go over your files and advice you on the next steps you can take. We can help you with progress payment schedule templates, and other matters that can help fast track finding the solution to your legal situation.
We inform clients of our costs without any hidden charges. We are very transparent about fees and can even offer qualified clients a “no win, no fee” options. With Contracts Specialist, you can be assured that you will be in good hands.