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ARTICLE · 28 JUNE 2021

Changes to the Building and Construction Industry Security of Payment Act 1999 (SOP Act)

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NSW residential builders can now resort to the SOP Act to promptly recover progress payments from home owners.

AustraliaReal Estate and Construction
Sean Greenwood
Sean Greenwood
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Residential home building work carried out by a home builder for an owner occupier homeowner has (until very recently as noted below) always been exempt from the security of payment regime in New South Wales.

However, since 1 March 2021 residential builders have been able to resort to the Building and Construction Industry Security of Payment Act 1999 (the SOP Act) with a view to promptly recovering progress payments from home owners.

In this respect, the SOP Act used to prescribe as a class of construction contracts owner occupier construction contracts. The SOP Act did not apply to such contracts. This was the effect of section 7(5) of the SOP Act and clause 4(1) of the Building and Construction Industry Security of Payment Regulation 2020 (the Regulation).

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Michael Byrnes, Partner
Phone: + 61 2 9233 5544
Email: [email protected]

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