Due to the nature of the building industry, contractors are consistently faced with the risk of delayed or non-payment for work that has been completed. The Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) was introduced to alleviate this problem.
The SOP Act provides a regime where a person who has carried out construction work, or has supplied goods or services related to construction work, is entitled to issue progress payments and provides a quick and cost effective mechanism to resolve any disputes without having to go to Court.
When can a payment claim be served?
The construction contract generally identifies when a payment claim can be made. These timeframes must be strictly complied with or the payment claim may be deemed invalid.
