How to serve valid Payment Claims.

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 be no Defense to a valid Payment Claim unless a Payment Schedule was provided.

Complying with the Act so as to serve valid Payment Claims can be difficult unless you know what you are doing and have an appropriate written contract in place.

If you are a builder or subcontractor and want to serve valid Payment Claims you should:

  • Download and review our free Security of Payment Guide.
  • Ensure that your standard form contract Terms & Conditions are worded so as to give you the greatest chance that your Payment Claims will be valid under the Act (see ‘What is a Reference Date?‘ in the Security of Payment Guide ), and
  • Consistently serve Payment Claims in accordance with the Act or your standard form contract Terms & Conditions.

If you don’t currently make contracts incorporating standard form Terms & Conditions of Trade specific to your business we recommend that you order a TradeSafe Contract package.

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TradeSafe Contracts Logo 19 March 2013 CROPPED

By Sam Roberts,
Managing Director, Accredited Specialist (Commercial Litigation)

Sam Roberts