An Act has been passed in NSW which changes payment
requirements in the Building and Construction
Industry.
The Building and Construction Industry Security of Payment
Amendment Act 2013 amends the Building and Construction Industry
Security of Payment Act 1999 where it relates to payments to be
made under construction contracts.
Changes to be introduced include that subcontractors need to be
paid within 30 days. In construction contracts "payment
claims" will no longer need to state that they are payment
claims made under the Act, but must now be accompanied by a
supporting statement that all subcontractors have been paid all
amounts owed to them. Contractors can be prosecuted for lying about
paying subcontractors, with fines up to $22,000 or possible jail
time. Another change is that a head contractor must pay retention
money into a trust account that operates according to the
regulations.
