Significant changes to security of payment legislation for NSW building and construction industry

Significant proposed changes to the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) were brought before the NSW Parliament in the second half of October by the Building and Construction Industry Security of Payment Amendment Bill 2013 (SOP Amendment Bill).

The amendments make substantial changes to the payment claim process under the SOP Act. In light of the serious consequences of the SOP Amendment Bill for non-compliance with the SOP Act's requirements, it is vital that construction industry participants are familiar with the proposed changes.

Background

The Collins' Independent Inquiry into Construction Industry Insolvency in NSW report (published on 28 January 2013) considered a range of protections to safeguard the interests of subcontractors in light of the high level of insolvencies in the construction sector. The full report can be accessed here.