Amendments to Security Of Payments Act now in place
Earlier this week, on 21st April 2014, changes came into effect for the Building and Construction Industry Security of Payment Amendment (SOPA) Act 2013 (“Amendment Act”). The amendments will apply to all contracts entered into on or after this date. The amendments include some of the recommendations made in the Collins Inquiry which looked at depth at insolvency in the NSW construction industry.
The Master Builders Association of NSW notified it’s members of the key amendments as follows:
“Removal of the requirement for endorsement of payment claims
The Amendment Act removes the requirement for the endorsement “This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999” unless the construction contract is connected with an exempt residential construction contract.
“Mandatory payment deadlines for commercial work
Except for exempt residential construction contracts and subcontracts under them, payment under a construction contract will be due and payable on:
a. the date 15 business days after a payment claim is submitted by a head contractor to a principal;
b. the date 30 business days after a payment claim is submitted by a subcontractor to a head contractor; or
c. an earlier date as provided in accordance with the terms of contract.
“Supporting statement to accompany payment claims
A head contractor must not serve a payment claim on the principal unless the claim is accompanied by a supporting statement that includes a declaration to the effect that all subcontractors, if any, have been paid all amounts that have become due and payable.”
Download this supporting statement form (as provided by MBA NSW) by clicking on the link.
CheckVault will be presenting at the MBA Cronulla Divisional meeting next week on Monday 28th April to discuss some of these changes and the implication to your construction business. The topic will also include:
- The Dangers of Overdue Debts
- How to minimise the risk of overdue debts
Date: Monday, 28th April 2014
Time: 6.00pm – 8.00pm
Venue: Tradies Club, 57 Manchester Road, Gymea
Cost: $10 for members, $20 for non members
RSVP: Click here to register
For further details on the amendments to SOPA click here to view the article in MBA Jan -Mar 204 Master Builders Magazine.