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ARTICLE · 25 JANUARY 2018

Security of payment – a problem financing progress claim invoices

Bartier Perry Solicitors
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NSW contractors may need to change progress claim processes as a result of a problem recently thrown up by this case.

AustraliaReal Estate and Construction
David Creais
David Creais
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If you are:

  • a contractor in the construction industry and want to raise finance on progress claims to boost cashflow, or
  • you provide finance that relies on progress claims being payment claims under security of payment legislation,

you need to be aware that you may need to change your processes as a result of a problem recently thrown up by the NSW Court of Appeal.

The problem

In Quickway Constructions Pty Ltd v Electrical Energy Pty Ltd the Court of Appeal held that an invoice for a progress claim that identifies that it has been assigned and directs that payment should be made to the lender is not a payment claim under the Building and Construction Industry Security of Payment Act 1999.

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