The following contracting requirements apply to all contracts for residential building work under the Home Building Act 1989 (NSW) (subject to applicable exemptions). Deposit The maximum amount of a deposit that may be demanded or lawfully received for residential building work is 10% of the contract price (Section 8). Statutory Warranties The following warranties are … Read more Requirements Applicable to All Residential Building Contracts
The following contracting requirements apply to contracts to do “residential building work“where the contract price or (if the contract price is not known) the reasonable market cost of the labour and materials involved exceeds $20,000.00 (inclusive of GST) by virtue of the Home Building Act 1989(NSW). Consumer Building Guide Before entering into a contract the … Read more Residential Building Contracts where the Price Exceeds $20,000.00 (incl. GST)
Among other things, the Home Building Act 1989 (NSW) (“the Act“) regulates the contracting requirements for any person making a contract to undertake ‘residential building work‘. Importantly, these requirements apply equally to any contract variations. The contracting requirements set out below apply to contracts entered into on or after 1 March 2015. Consequences of Non-Compliance … Read more Introduction: Contracting Requirements under the Home Building Act
The Building & Construction Industry Security of Payment Act 1999 (NSW) (“the Act“) is unlike any other law in the country (apart from its interstate equivalents). The purpose of the Act is to improve cash flow for contractors, suppliers and professionals in the building industry (“contractors“). It applies to contracts for the carrying out of … Read more Security of Payments: Dates, Deadlines & Traps
Construction Contracts made after 21 April 2014 All rights under the Security of Payment laws from the service of a valid Payment Claim. However, only a single Payment Claim may be issued in relation to each Reference Date. Subcontractors that were not previously familiar with the security of payment laws and who did not use … Read more Unintended Consequences for Building Subcontractors – Construction Contracts made after 21 April 2014
The Building & Construction Industry Security of Payment Act 1999 (NSW) is significant because it provides for the following consequences: Where a Subcontractor serves a Payment Claim (similar to a tax invoice) on a the other party and the other party does not provide a Payment Schedule (a response) within the relevant time, the other … Read more Why the SOP Act is so Significant
As a result of the severe consequences of failing to provide a Payment Schedule in response to a valid Payment Claim a lot of the case law that has developed in relation to the Building & Construction Industry Security of Payment Act relates to when a Payment Claim is valid. This is because there can … Read more How to serve valid Payment Claims.
The Building and Construction Industry Security of Payment Amendment Act (NSW) 2013 (‘the Amendment Act‘) contains important amendments to the Building and Construction Industry Security of Payment Act (NSW) 1999 (‘the Act‘). The Amendment Act will apply to all Construction Contracts entered into from 21 April 2014. Summary of Key Amendments The key amendments are: … Read more 2014 Security of Payment Act Amendments – What’s New?
All rights under the Building & Construction Industry Security of Payment Act flow from this service of a valid Payment Claim. In NSW, without limitation, a Payment Claim pay be served by: Delivering it to the person personally, Lodging it during normal office hours at the persons ordinary place of business, Sending it by post … Read more Can You Prove Service of a Valid Payment Claim?
The Building and Construction Industry Security of Payment Act 1999 (NSW) applies to almost everyone who works in the building and construction industry or who supplies related goods or services. This includes quantity surveyors, planning consultants, project managers, engineers, carpenters, electricians, painters, pest inspectors etc. However, it does not apply if you do work directly … Read more New to Security of Payment Laws