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Posted 28 July 2021
Category: Security of Payments
With record insolvency levels in the construction industry, the NSW Government has moved to tighten up the security of payment regime to improve cash flow and payment terms within the industry and provide further relief to residential builders.
With the commencement of the Building and Construction Industry Security of Payment Regulation 2020 (NSW) (Regulations), owner occupier residential contracts entered into from and after 1 March 2021 are now caught by the security of payment regime.
Whilst the changes mean that residential builders can now access the security of payment regime for owner occupier residential contracts without having to commence proceedings in a tribunal or court, builders should be aware of the strict time requirements and limitations of the security of payment legislation.
To ensure you are not caught out by any non-compliance with the technicalities of the security of payment process and for general information, see: SOPA workflow and SOPA flowchart.
In addition to the above, the following important changes also apply:
Further articles on the management of security of payment claims and adjudications can be found on the Bannermans website here.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.