Recent changes to Security of Payments Regulations a game changer for NSW Residential Builders’ ability to Resolve Disputes and recover Progress Payments Promptly.

On 1 September 2020 the NSW Government released the Building and Construction Industry Security of Payment Regulation 2020 (“the Regulation”) which, among other things, will drastically change the way residential builders and homeowners resolve disputes about progress payments after 1 March 2021. The Regulation, which otherwise made minor changes in relation to Retention Money Trust … Read more Recent changes to Security of Payments Regulations a game changer for NSW Residential Builders’ ability to Resolve Disputes and recover Progress Payments Promptly.

A builder made promises to me during negotiations that aren’t in the Contract, what can I do?

It is not uncommon for a builder to make representations to a home owner in the course of negotiations for a Residential Building Contract where the subject matter of the representation is something that isn’t expressly covered in the final contract. However, where the home owner relies on a representation made, such that they otherwise … Read more A builder made promises to me during negotiations that aren’t in the Contract, what can I do?

Do all residential building disputes have to be determined by the NSW Civil & Administrative Tribunal (“NCAT”)?

Generally, a builder or home owner may commence proceedings in relation to a residential building dispute in a Court of competent jurisdiction (subject to relevant limitation periods), or in the NSW Civil & Administrative Tribunal (“NCAT”) provided that: The amount claimed does not exceed $500,000.00 (Section 48K(1)), and Proceedings are commenced within three (3) years … Read more Do all residential building disputes have to be determined by the NSW Civil & Administrative Tribunal (“NCAT”)?

Commercial & Retail Fitouts. How you could find yourself out of business before you even begin.

The tips in this article are intended for business owners planning to fit out commercial or retail premises and Landlords of premises leased to such businesses. Briefly, the relevance for the Landlord is simply that: if their Tenant gets caught out they may become insolvent and unable to pay rent before the Lease even begins, … Read more Commercial & Retail Fitouts. How you could find yourself out of business before you even begin.

High Court settles argument about when a Payment Claim can be validly issued

In a decision of great relevance to members of the building and construction industry, the High Court has provided some certainty in relation to when a valid Payment Claim may be issued under a construction contract and put to rest a debate that has gone on for some time in light of various legislative amendments … Read more High Court settles argument about when a Payment Claim can be validly issued

Consequences of failing to comply with the Home Building Act.

The Home Building Act 1989 (“the Act“) places obligations upon contractors who contract directly with home owners to undertake residential building work. We have summarised these obligations in further articles contained on our website. See Introduction – Contracting Requirements under the Home Building Act. Consequences of contravening the Act Pursuant to Section 10 of the … Read more Consequences of failing to comply with the Home Building Act.

Security of Payments: Dates, Deadlines & Traps

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

Unintended Consequences for Building Subcontractors – Construction Contracts made after 21 April 2014

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

Why the SOP Act is so Significant

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

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 … Read more How to serve valid Payment Claims.