Until now, the Building and Construction Industry Security of Payment Act 1999 (NSW) only affected the commercial building sector. From 1 March 2021, owner occupiers are required to understand and apply the Act as it relates to their family home.
What does this change to the Building and Construction Industry Security of Payment Act 1999 (NSW) mean for clients?
This change is good news for our residential builder clients.
Progress claims issued by builders must include information on how the owner can reply to the payment request and include the time allowed the owner for response and payment.
What is different?
Before the change, builder grievances for non/late payments were normally referred to NCAT (an often drawn-out, difficult and costly process). Now, under the Act:
- The builder issues a claim for payment.
- The owner responds with a payment schedule detailing how much it will pay and their reasons for not paying in full.
- If the owner fails to pay the balance, the builder can bring an adjudication application under the Act. In some cases, the builder can recover the unpaid amounts in court.
If you would like a copy of the Act or the most recent explanatory newsletter on the topic from Solicitors, please contact MECON.
Kindly note that the forgoing article does not encompass all facets of the Act, it merely draws attention to some of the more salient features of the Act that could apply to MECON clients. It must not be relied on as general advice. Please obtain a copy of the Act for specific information.