Building and Construction Industry Security of Payment Amendment Act 2018

On 21 November 2018 the NSW Government passed the Building and Construction Industry Security of Payment Amendment Act 2018 (the Act). The Act amends the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) and forms part of NSW's formal review of SOPA which commenced in 2015. The Amendments also form part of NSW's response to the Murray Report into Security of Payment legislation around Australia. The Act will commence on a date to be appointed by proclamation. 

Under section 7(2)(b) of the previous regime, SOPA did not apply to a construction contract for the carrying out of residential building work, within the meaning of the Home Building Act 1989 (NSW), on premises in which the contracting party is or proposes to be resident. The Act transfers this residential building work exemption from SOPA to the regulations. This amendment will allow the exemption to be refined or removed following further stakeholder consultation.

The Act also amends section 13(2) of SOPA by reinstating the requirement that all payment claims must state that it is made under SOPA. This amendment is particularly welcome to principals in the residential build to sell market, who may not otherwise realise that the processes of SOPA are being engaged. 

To read more about the key provisions of the Act click here

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.