CONSTRUCTION LAW: BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 (NSW)

Overview of the legislation and what you need to know

What are the main purposes of the Payment Claim Scheme?

• To entitle certain persons who carry out construction work or who supply related goods and services to timely payment for the work they carry out and the goods and services they supply.
• To provide a procedure for securing payments to which persons become entitled under the Act.

Do you have a right to a Progress payment?

Section 8 of the Act provides that on and from each reference date, a person who has undertaken to carry out construction work, or to supply related goods and services, becomes entitled to a progress payment. A reference date is ascertained in accordance with the terms of the contract as a date for making a claim for a progress payment or as a date by reference to which the amount of a progress payment is to be calculated. If however the contract contains no such terms, the reference date is a date occurring at 4-weekly intervals from the commencement of construction work, or the supply of related goods and services.

At Belgrave Lawyers we can assess your claim and see if you have a right to a progress payment.

What must a Payment Claim contain on the document to be accepted by the Adjudicator as a proper Payment Claim?

• Must identify the construction work to which a progress payment relates.
• Must indicate the amount of the progress payment that the claimant claims to be due.
• And must state the following words…. “ this payment claim is made under the Building and Construction Industry Security Of Payment Act 1999 (NSW)”

At Belgrave Lawyers – we can draft the payment claim for you.

How to reply to a payment claim if a payment claim has been served on you?

Section 14 of the Act enables a person on whom a payment claim is made to reply to the claim by providing a payment schedule to the claimant. The schedule will set out how much the respondent proposes to pay the claimant (if any) and when. A payment schedule must:

• Must identify the payment claim to which it relates, and
• Must indicate the amount of the payment (if any) that the respondent proposes to make.
• Must indicate why the scheduled amount is less (if it is less because the respondent is withholding payment for any reason) the respondent’s reasons for withholding payment

At Belgrave Lawyers – we can draft the payment schedule for you.

Adjudication of Disputes

Section 17 of the Act enables a claimant to apply for adjudication of the amount of a progress payment payable in the event that the amount set out in the respondents payment schedule is less than the amount set out in the claimants payment claim.

At Belgrave Lawyers – we can draft your application and submissions for you.

contact usfor more information.

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