Security of Payments

Beware of SOPA - 10 or Less Business Days to Dispute Invoices

Owners corporations entering into contracts with builders need to be aware of the Building and Construction industry Security of Payment Act 1999 (NSW) (SOPA) to avoid payment disputes which can be very costly and difficult to challenge.

Dealing with Payments Under the Building and Construction Industry Security of Payment Act 1999 (NSW) ("SOPA")

Key Features

SOPA sets out a statutory framework for:

  • Making a progress payment claim;
  • Responding to a progress payment claim;
  • Determining by adjudication the amount of a disputed progress payment; and
  • Payment of a determined progress claim amount.

The Court's Interpretation - Are Project Managers and Supervisors Covered Under the Security of Payment Act?

SOPA applies to Architects, Engineers, Designers, Project Managers, Superintendents

There is often confusion amongst architects, engineers, designers and professionals who provide project management and contract management services about whether they can make a claim for payment under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA). 

Security of Payment Reforms

Summary

On 20 November 2013 the Building and Construction Industry Security of Payment Act 1999 (“the Act”) was amended so that the following new payment terms apply to all construction contracts (other than excluded construction contracts) entered on or after 21 April 2014. 

Security of Payments Workflow

For  your reference we have compiled a process document as a step by step procedural guide to the Building and Construction Industry Security of Payment Act 1999 (NSW), incorporating the amendments made by the Building and Construction Industry Security of Payment Amendment Act 2013 which are to take effect from 21 April 2014 (i.e. to construction contracts entered into from 21 April 2014).

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