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Confusion exists about the steps that need to be taken to
ensure that you are paid fully and on time. The Security of
Payment Act is your safeguard
NSW Master Builders Head
Solicitor, Robert Collings, walks you through what you need to
know
There continues to be a basic lack of understanding among builders
and subcontractors about the statutory procedures involved in the
Building and Construction Industry Security of Payment Act 1999. This is no reflection on the individual
builders and subcontractors, as the Act can become confusing in that there are a number of choices to be
made at each step. Accordingly, this article seeks to set out the basic principles.
OBJECTIVES
The basic objects of the Act are to:
· entitle certain persons who carry out construction
work to timely payment for the work they carry out,
and
· provide a procedure for securing payments to
which those persons become entitled under the
Act.
The Act is intending to work in tandem with the
contract procedure. The procedure under the Act
has no effect on any civil proceedings that either
party may wish to bring before a court or a tribunal
involving the same issues.
BASIC PROCEDURE
· A claim is made for payment (payment claim).
· The claim is accepted or disputed (payment
schedule).
· A disputed claim can be referred to an
adjudicator for determination (adjudication).
· Payment.