ALERT – THE SECURITY OF PAYMENT AMENDMENT ACT WILL COMMENCE ON 21 APRIL 2014 AND AFFECT ALL CONTRACTS ENTERED INTO AFTER 21 APRIL 2014 – CTI LAWYERS
The NSW government has recently announced that the amendments to the Building and Construction Industry Security of Payment Amendment Act 2013 (“the Amendment Act”) will commence on 21 April 2014 and will apply to all contracts entered into from 21 April 2014.
Below is a brief recap on the changes to the Act:
- Progress payments from Principals to Head Contractors become due and payable 15 business days after a payment claim is made.
- Progress payments from Head Contractors to Subcontractors become due and payable on the date occurring 30 business days after a payment claim is made.
- Payment Claims will no longer have to include the statement “this is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 (NSW)” in order to attract the operation of the Act.
- Head Contractors must submit a “Supporting Statement” when serving a Payment Claim on a Principal declaring that all subcontractors and suppliers have been paid amounts owing to them.
- Powers are given to authorities to call for documents and investigate false supporting statements issued by Head Contractors.
- New Trust Account Requirements for retention money may be regulated.
NOTE: Any amendments made by the Amendment Act will not apply to a construction contract entered into before the commencement of the Amendment Act, namely 21 April 2014.
Our Solicitors at CTI Lawyers will be able to assist you and your staff in complying with the new provisions of the Amendment Act. You can contact CTI Lawyers on (02) 9744 1099 or email your enquiry to [email protected].