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ARTICLE · 20 JULY 2009

Standard Form Contracts And Issuing Payment Claims

DLA Piper Australia
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A recent decision demonstrates that contractual modifications, if correctly drafted, can impact significantly on the operation of Security of Payment legislation.

AustraliaReal Estate and Construction
Richard Atkin
Richard Atkin
Andrew Kelly
Andrew Kelly

A recent decision demonstrates that contractual modifications, if correctly drafted, can impact significantly on the operation of Security of Payment legislation.

A properly drafted contract including modification of Australian standard form contracts may supplant the operation of Security of Payment legislation by either improving or restricting a claimant's entitlement to submit payment claims or imposing shorter time frames for giving payment schedules.

Judicial Consideration

In the matter of Thiess Pty Ltd v Lane Cove Tunnel Nominee Company Pty Ltd [2009] NSWCA 53, the Court held that contractual modifications reducing the time frame for service of a payment schedule will not be effective unless it is clear on the words of the contract that the contractual time frames are to supplant the time stipulations stated in the Security of Payment Act.

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