SOPA & Statutory Demands

There has been some confusion about whether debts which arise under Building and Construction Industry Security of Payment Act 1999 (NSW) (the SOPA) can be enforced using a statutory demand.

In Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd [2019] NSWCA 60 (Grandview v Budget), the NSW Court of Appeal held that all debts arising under the SOPA can be enforced using statutory demands.

This article looks more closely at:

1. in what circumstances a party to a building contract or subcontract can issue a statutory demand for money owing as a result of the operation of the SOPA; and
2. if such a statutory demand is issued, what are the common circumstances in which the Court will set aside the statutory demand.