NSW Security of Payment Act
The NSW Building and Construction Industry Security of Payment Amendment Bill 2018 has passed parliament.
The Act aims to ensure that contractors and subcontractors are paid promptly, that cash is moved down the contracting chain faster and that disputes over payments can be resolved fairly and quickly. The Bill seeks to strengthen the security of payment framework while improving the operation of the Act and facilitating greater confidence within the industry of the Act’s ability to facilitate cash flow along the construction chain.
Key reforms include:
- providing a statutory minimum entitlement to make a payment claim at least once per month, for work done within that month,re-inserting the requirement for the endorsement of payment claims
- allowing claimants to make a final payment claim where a contract has been terminated
- shortening payment due dates,enabling subcontractors to be able to inspect the retention money trust account records
- enabling the Minister to make a code of practice for Authorised Nominating Authorities
- new investigative and enforcement powers to investigate, monitor and enforce compliance with the Act.
The changes do not apply to existing construction contracts. Fair Trading is now developing the relevant regulations. More information is availabe on the NSW Fair Trading website.