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ARTICLE · 24 JUNE 2015

Beware! Recent developments to Security of Payment Act claims in NSW

Coleman Greig Lawyers
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The NSW Supreme Court has explored two very important features of the Security of Payment Act (SOPA) legislation in NSW.

AustraliaReal Estate and Construction
Nick Kallipolitis
Nick Kallipolitis
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In the recent case of Patrick Stevedores Operations No.2 Pty Ltd v McConnell Dowell Constructors (Aust) Pty Ltd [2014], the Supreme Court explored two very important features of the Security of Payment Act (SOPA) legislation in NSW:

  1. Can there be a valid payment claim if it is issued after the contract has been terminated and the reference dates do not survive termination?
  2. Does plant and material on order/removed post termination by the contractor fall within the meaning of construction work under the SOPA?

In both cases the Court answered 'No.'

The case
Dowell was contracted by Stevedores to carry out upgrade works at its Port Botany Container Terminal. Stevedores terminated the contract before the work was completed.

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