Security of Payment Update
The Government has announced that the changes to the Building and Construction Industry Security of Payment Act 1999 will commence on 21 April 2014.
Changes being implemented
The changes being implemented on 21 April 2014 will include:
The introduction of a maximum payment term for progress payments;
The requirement that payment claims made by a head contractor include a supporting statement declaring that subcontractors it has engaged have been paid what is due and payable; and
The removal of the requirement that a payment claim must state that it is being made under the Act.
The Department of Finance and Services will publish a compliance and enforcement policy that includes guidance material on the new law.
We will provide further information as it becomes available.
If you would like any further information on this topic, please contact: