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

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

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

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

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

2014 Security of Payment Act Amendments – What’s New?

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

Can You Prove Service of a Valid Payment Claim?

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