The Building & Construction Industry Security of Payment Act ensures that the party who has provided work, goods or services can enforce prompt payment from the company receiving those goods or services.
The Security of Payment Act is beneficial because claimants can use the Act to secure payment on account in a manner which is inexpensive and quite efficient without the need for extensive litigation.
The Act enables a claimant to have a judgment for a progress payment on account within a matter of weeks which compels the respondent to pay.
Further, the Act applies to:
- Any construction contract;
- A construction contract that is written or oral;
- A construction contract that is partly written and partly oral;
- A construction contract that says it is to be governed by a law of a State or Territory outside of NSW but the work is carried out in NSW;
- From 1 March 2021, owner occupier construction contracts.
Who may claim?
- Head Contractor
- Plant and equipment hirer
What work can be claimed?
- construction work you have done
- construction material or plant you have provided
- consulting services you have provided
- interest on overdue progress payments
- your losses and additional costs due to work being deleted from your contract while you suspended work
- cash security and retention money
- the final payment, at the end of a contract
When can I claim?
- Contracts might specify when payment claims can be made. If no dates are stated, it is the last day of the month.
For more information on your rights, contact David Kolarovski at our Belmont office on 02 4945 8577.