The NSW Government, by proclamation of the Governor, has
appointed 21 April 2014 (Easter Monday) as the
date of commencement for changes to the Building and
Construction Industry Security of Payment Act 1999 (NSW)
("SOPA"), apart from the establishment
of trust accounts for retention funds as there is no indication
when the regulations dealing with that issue will be
These changes were enacted as the Building and Construction
Industry Security of Payment Amendment Act 2013 (NSW) late
last year. Our summary of the changes can be viewed
For contracts entered into after Monday 21 April 2014, parties
in the building and construction industry should take note of the
following key changes:
removal of the requirement for an "endorsement" on
payment claims (non-residential);
prompt payment timelines; and
head contractors are now required to provide a supporting
statement, backed up with heavy fines and imprisonment penalties
The NSW Government has also amended the Building and
Construction Industry Security of Payment Regulation 2008
(NSW) to prescribe the form for the supporting statements that will
now be required of head contractors. The amendment: Building
and Construction Industry Security of Payment Amendment (Supporting
Statement) Regulation 2014 (NSW), published 11 April 2014
(2014 No 185) can be accessed through the NSW Government
All parties in the NSW building and construction industry should
be aware that the changes to SOPA are perhaps the most significant
since these laws were introduced in 1999. There are a number of
subtle but important issues with the changes to SOPA that could
catch unprepared parties. Further, strict time limits and even
criminal penalties may now apply.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Many retail leases include a covenant to trade, requiring the tenant to open the premises for trade during certain hours.
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