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ARTICLE · 05 OCTOBER 2016

Pre-conditions to reference dates arising under the SOP Act: Are they valid?

There are limits on contracting parties to provide for whether and when a reference date arises under the SOP Act.

AustraliaReal Estate and Construction

There are limits upon the freedom of contracting parties to provide for whether and when a reference date arises for the purposes of the SOP Act.

It is common for construction contracts to state that a reference date under the Building and Construction Industry Security of Payment Act 1999 (SOP Act) will only arise once a specified date has passed and the contractor has submitted all required documentation.

The required documentation is often a statutory declaration by the contractor that all sub-contractors have been paid all moneys due and payable in respect of the work the subject of the payment claim and/or a "Subcontractor Statement" regarding worker's compensation, payroll tax and remuneration.

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