In brief - Amendments will apply to contracts entered into from 21 April 2014
The NSW government has announced that the amendments introduced by the Building and Construction Industry Security of Payment Amendment Act 2013 will commence on 21 April 2014 and that the amendments will apply to contracts entered into from 21 April 2014.
Bill passes both houses of NSW parliament in November 2013
On 28 October 2013 we reported in our article Significant changes proposed for security of payment legislation in NSW on the introduction of a bill to the NSW parliament on 24 October 2013, proposing significant changes to the Building and Construction Industry Security of Payment Act 1999 ("the Act").
The Building and Construction Industry Security of Payment Amendment Bill 2013, as amended in the NSW Legislative Council, passed both houses of parliament on 14 November 2013 and was given assent on 20 November 2013. (Please see our earlier article Retention money to be held in trust for subcontractors under security of payment laws in NSW.)
The NSW government has just announced through its ProcurePoint website that the amendments to the Act introduced by the Building and Construction Industry Security of Payment Amendment Act 2013 will commence on 21 April 2014 and that the amendments will apply to contracts entered into from 21 April 2014.
Compliance and enforcement policy still to be published
We understand that the Department of Finance and Services will publish a compliance and enforcement policy that includes guidance material on the amendments.
We will report further once the prescribed form for the new "supporting statement" that must accompany a payment claim made under the Act by a "head contractor" is made available.
Charles
Brannen
czb@cbp.com.au
Construction and engineering
CBP Lawyers