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ARTICLE · 27 OCTOBER 2020

Security-of-Payment Legislation In Australia

Jones Day
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Australia-wide, companies are navigating the uncertainties arising from COVID-19. Our previous White Papers identified the risks arising for construction projects

AustraliaLitigation, Mediation & Arbitration

AUSTRALIA: A SNAPSHOT

Security-of-payment legislation has been enacted in every Australian jurisdiction, providing a statutory regime for the submission and payment of regular progress claims and the resolution of any payment disputes in relation to construction work that falls within the ambit of the relevant legislation. Each of the regimes grant rights to submit progress claims and to have any dispute in respect of those claims resolved more quickly, on an interim basis, by a process of statutory adjudication governed by specific rules and short timeframes. In broad terms, each regime generally involves the following:

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The overall time it takes to have a disputed payment claim determined by adjudication varies in each jurisdiction, but it can be as short as approximately 35 business days (in New South Wales ("NSW") and South Australia ("SA")—so the process is a fast one, presenting both opportunities and challenges for those involved. The adjudicator's

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