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ARTICLE · 23 JANUARY 2017

Reference dates under a construction contract necessary for valid payment claims

Sparke Helmore Lawyers
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The High Court delivered a clear message that there must be a "reference date" for the payment claim to be valid.

AustraliaReal Estate and Construction
Grant Parker
Grant Parker
Paul Tobin
Paul Tobin
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In its first decision concerning the construction industry's security of payments laws, the High Court's judgment this week in Southern Han Breakfast Point Pty Ltd (In Liquidation) v Lewence Construction Pty Ltd [2016] HCA 52 has delivered a clear message to claimants and those responding to claims that there must be a "reference date" for the claim to be valid.

The reference date is the date that the construction contract provides is the date on which a claim for a progress payment may be made, or the last day of the month if the contract doesn't specify such a date. While the High Court's judgment was made in relation to the Building and Construction Industry Security of Payment Act 1999 (NSW), it will also be of relevance to the security of payment legislation in the other states and territories that is modeled on the original New South Wales legislation.

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