Security Of Payment Act, Payment Claims And Payment Schedules: Common Sense Prevails

The NSW Supreme Court has handed down three decisions which confirm that a common sense approach will be applied when deciding issues concerning payment claims and payment schedules.

These decisions also send a clear message that purely technical arguments about payment claims or payment schedules will not succeed.

Tell them why you are not paying or lose the right: John Holland Pty Ltd v RTA

In this case, the NSW Court of Appeal set out the importance of getting the payment schedule right from the very first opportunity and putting forward in the payment schedule all the reasons for not paying. The time critical nature of the procedures under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) means that even valid reasons for not paying are effectively barred unless they are raised in the payment schedule.