The new amendments to the Building and Construction Industry
Security of Payment Act 1999 (NSW) (Act) to
are to come into effect on 21 October 2019 and will apply to
construction contracts entered into after this date.
Here are the key changes that you should be aware of:
- The removal of reference dates
-
The most significant amendment to the Act is the removal of the
concept of a 'reference date'. Reference dates are often
the stem of confusion and failure to comply with those dates can
often lead to a payment claim being invalidated.
Under the new regime, a claimant has a default entitlement to
serve a payment claim on and from the last day of the month in
which construction work was first carried out and then on and from
the last day of each subsequent month. However, if a construction
contract allows for an earlier date for the serving of a payment
claim, the claim may be served on and from that date instead.
