Get to know the security of payment model for your construction project

Universities undertaking construction projects need to be aware of the impact of security of payment legislation in their state or territory on payments to contractors and consultants. A lack of awareness of the relevant legislation may result in considerable risks for a university from both a legal and commercial perspective. In this article we summarise the two distinct security of payment models, commonly known as the East Coast and West Coast models, and consider the key risks arising from the operation of these models.

East Coast model

The East Coast model applies in Queensland, New South Wales, the Australian Capital Territory, Victoria, Tasmania and South Australia. While there are differences between the legislation of these jurisdictions, the key features of the model are: