The Act

'The law all Subcontractors should be aware of'

The most important benefit of the Security of payments Act is speed. If a contractor or subcontractor is owed money the sooner they obtain a susccessful Determination and obtain Judgement the more likely they are to recieve payment. What can be accomplished in a few weeks with the Security of Payments Act, would if pursued through the Court Process, take many months or years and cost a fortune. By that stage they would join a long line of creditors and face a likely Administration or Liquidation and may not get a cent.

The object of the NSW Government's Building and Construction Industry Security of Payment Act 1999 No 46 (and the respective and similar Queensland Act) is to ensure that any person who carries out construction work or provides goods and services under a construction contract is entitled to make progress Payment Claims and receive payment every month, even where the contract has no provision for progress payments. The Act also assists in obtaining final payment and release of retention money.

The Security of Payment Act is created to allow the supplier of goods and services to be paid in good time for the works done as per the agreement or contract.

Definitions

Adjudicator in relation to an adjudication application, means the person appointed in accordance with this Act to determine the application.

Authorised Nominating Authority means a person authorised by the minister under Section 28 to nominate persons to determine adjudication applications.

Claimant means a person by whom a payment claim is served under Section 13.

Construction Contract means a contract or other arrangement under which one party undertakes to carry out construction work, or to supply related goods or services, for another party.

Respondent means a person on whom a payment claim is served under Section 13.

Scheduled Amount means the amount of a progress, final or retention payment that is proposed to be made under a payment schedule, as referred to in Section 14.

*The resources listed on the left are for your reference, they should be helpful if you are looking for a more detailed explanation of the Acts. Further to this you may use our custom search function that has been applied to only search for websites related directly to Security of Payments Act.