Building and Construction Industry (Security of Payment) Information
The Building and Construction Industry Security of Payment Act 1999 is the primary legislative instrument regulating payment practices in the industry. The Act’s objective is to promote the flow of progress payments by providing a statutory right under a construction contract to receive and recover payments relating to the carrying out of work and the supplying of related goods and services.
The amendments to the Act, passed by the NSW Parliament in November 2013, commence on 21 April 2014. The changes are:
- introduce prompt or maximum payment terms for progress payments
- require that payment claims made by a head contractor include a supporting statement declaring subcontractors it has engaged, have been paid what is due and payable
- remove the requirement that a payment claim must state that it is being made under the Act