Building and Construction Blog

New Building and Construction Industry Security of Payment Act

Posted by Nick Kallipolitis on 26 Jul 2019

Assisted by Mario Rashid-Ring. 

The NSW Government has declared that Monday 21 October, 2019 will be the day on which the Building and Construction Industry Security of Payment Amendment Act 2018 No 78 9 (the Act) will commence.

Some of the key changes the Act will introduce into the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) include:

  • a reference date is no longer required for the purposes of a payment claim. Payment claims are now able to be made on and from the last day of a month, notwithstanding the terms of the contract;
  • in the case of contracts that have been terminated, a payment claim may be served on and from the date of termination;
  • payment claims will again be required to state that they are “made under the Act;”
  • payment from a head contractor to a subcontractor has been reduced from 30 to 20 business days;
  • companies in liquidation will not able to reply on the SOP Act to make a claim or enforce payment;
  • increased penalties for a number of offences, including failing to provide a supporting or false/misleading statements; and,
  • prosecution and personal liability for company directors if a company commits certain offences under the SOP Act.

Changes to the SOP Act will apply to all construction contracts entered into after Monday 21 October, 2019. For more information on how these changes may impact your business, please contact our Building Dispute and Construction lawyers: