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ARTICLE · 18 JULY 2019

Have you properly identified your payment claim under the SoP Act?

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Payment claims must satisfy the formality requirements under section 14(2) of the SOP Act to ensure their effectiveness.

AustraliaReal Estate and Construction
Kyle Siebel
Kyle Siebel
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The Victorian Supreme Court in John Beever (Aust) Pty Ltd v Paper Australia Pty Ltd [2019] VSC 126 provided further guidance on serving valid payment claims under the Building and Construction Security of Payment Act 2002 (Vic) (SOP Act).

Requirements under the SOP Act

A payment claim made under the SOP Act will only be valid and effective if the formality requirements applicable to payment claims under section 14 of the SOP Act are satisfied. This case considered two of those requirements, namely:

  • section 14(2)(c), which requires that a payment claim "must identify the construction work or the related goods and services to which the progress payment relates"
  • section 14(2)(e), which requires that a payment claim "must state that it is made under this Act".

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