Construction update - new changes to Security of Payment legislation

IN BRIEF

Amendments to the NSW Security of Payment legislation are expected to commence in April 2014. In this article we take a look at these significant amendments and what they mean for principals, head contractors and subcontractors.

Late last year, following the recommendations of the Collins Inquiry into insolvency in the construction industry, the NSW parliament assented to the Building and Construction Industry Security of Payment Amendment Act 2013 (NSW) (Amendment Act) which amends the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act). The amendments are expected to commence in April 2014.

The main amendments are:

• Contractors will no longer be required to state on a payment claim that the claim is made in accordance with the SOP Act;