Call a Security of Payments Lawyer to get help on any of your payment issues such as late payment and non-payment.
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.
Most transactions are high value and low-profit margin. Construction work is subject to a lot of risks. Many of these risks are outside of the businesses’ control such as time, weather, neighbours, etc.
The Security of Payment Act ensures that contractors and subcontractors get their rightful payment after rendering construction services. It enforces the contractor or subcontractor’s rights to progress payments and provides a fast debt recovery process.
Many small subcontractors and suppliers do not get paid for their work. Because of this, 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.
Security of Payment Act is a legislation in New South Wales (with similar legislation in other states and territories in Australia) that assists subcontractors and suppliers in the building and construction industry to receive progress payment from builders and/or principals.
The first objective ensures the right of anyone who carried out construction work or supplied goods and materials to be 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.
NO. It is relatively cheap and efficient compared to the court system. The Security of Payment Act provides a quick and inexpensive process in recovering payment debts.
The debt recovery process is not the usual trial that involves witnesses, court hearings, or cross-examinations. Moreover, it does not necessarily require extensive involvement of lawyers. In just a matter of weeks, the party who applied for adjudication, or known as the claimant, can have a judgment for a progress payment.
Building and Construction Lawyers
A construction lawyer is obliged to protect the contractor’s payments. Construction lawyers, also known as Building Solicitors, are legal professionals who can be consulted for legal advice or with legal matters specifically concerned with building and construction. They offer a wide range of services to any person in need of assistance with building and construction projects.
Their duties and responsibilities are more than just representing builders, contractors, subcontractors, and homeowners. They provide services from the moment a project begins, or the planning stage, until its completion.
Building lawyers do not just ensure a legal and proper construction process of a building project. They also usually work with clients by providing them with legal services such as doing paperwork which include writing contracts, letters, and other documents. They directly communicate with the clients by taking instructions from them, and advising and discussing their legal matters particularly if it concerns their construction projects. Moreover, a building lawyer must ensure his/her client’s rights are enforced especially when the client is a contractor who may always be subject to payment disputes.
Some clients or homeowners do not pay their contractors until they are obliged to. Of course, there are clients who pay their contractors early or on time. However, there are those who tend to delay their contractor’s payment. Or worse, they do not pay the contractor at all.
So what good do partial payment, late payment, and non-payment do? Absolutely none! That is why it is important for contractors’ clients to know why they MUST pay their contractors. Below are more reasons on the importance of paying contractors:
NCAT, Local Court, District Court, and Supreme Court matters
Contracts Specialist has vast knowledge and experience in construction contracts and disputes, including 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 as 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.
With Contracts Specialist, you can be assured that you will be in good hands.
Contracts Specialist is a Sydney-based construction law firm that deals with Building Disputes, Construction Contracts, Debt Recovery, and Security of Payment. With Contracts Specialist, you are ensured that you are in good hands.