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VIDEO · 21 APRIL 2021

Changes to the NSW Security of Payment Act

The changes are wide ranging throughout the construction industry, for principals, sub-contractors and head contractors.

AustraliaReal Estate and Construction

In October 2019, the Building and Construction Industry Security of Payment Act 1999 (NSW) (Act), was amended and the changes apply to Construction Contracts entered into after 21 October 2019.

These changes have wide ranging impacts throughout the construction industry, including principals, sub-contractors and head contractors.

A brief summary of the major amendments is provided below.

Comparison of Key Amendments

Amendment Contracts entered into pre-October 2019 Contracts entered into post-21 October 2019
Reference Dates

A right to payment arises on and from each reference date.

A reference date arises at the end of each month or in accordance with the terms of the construction contract.

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