In less than two weeks important changes in the Security of Payment Act (SOPA) legislation1 will come into force in NSW.

The changes introduced by the Amendment Act2 will significantly impact the administration of construction contracts entered into after 21 October 2019, particularly during the project delivery phase.

Accordingly, contractors, subcontractors and consultants should carefully review their standard terms to ensure consistency with the changes.

Principals and head contractors should carefully review their contract terms to determine if they comply with the amendments introduced by the Amendment Act, having regard to the increased maximum penalties for corporations that breach the provisions of SOPA and the investigative and monitoring powers given to authorised officers to ensure compliance with SOPA.

The table below sets out some of the key changes.


1 Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA)

2 Building and Construction industry Security of Payment Amendment Act 2018 (NSW) (Amendment Act)

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.