NSW security of payment changes to commence on 21 October 2019

Introduction

The NSW government has recently issued a Commencement Proclamation for the Building and Construction Industry Security of Payment Amendment Act 2018 (NSW) (Amending Act) and delivered the much anticipated Building and Construction Industry Security of Payment Amendment Regulation 2019 (Regulations).

Application of the Amending Act to construction contracts

The Amending Act will commence on 21 October 2019 and will apply to all contracts entered into after that date and will not act retrospectively.

A brief summary of the changes are as follows:

1. the accrual of a 'reference date' is no longer a precondition to a valid payment claim;
2. a payment claim is able to be served monthly, on and from the last day of the named month in which the construction work was first carried out, and on the last day of each subsequent month;