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ARTICLE · 05 MAY 2018

What should the supporting statement to a payment claim contain or does it matter anymore?

Holding Redlich
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Contractors must ensure they conform in every respect with the Act and that the information must be full and accurate.

AustraliaReal Estate and Construction
Helena Golovanoff
Helena Golovanoff
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In the recent decision of Central Projects v Davidson the Supreme Court has clarified the requirements for a Supporting Statement under section 13(7) of the Building and Construction Industry Security of Payment Act making observations about the consequences of a breach of section 13(8) that depart from established authority.

It didn't take long after the commencement of the amendments to the Building and Construction Industry Security of Payment Act 1999 (NSW) (the Act) inserting the requirement for a Supporting Statement in April 2014 for the operation of those provisions to be tested. In Kitchen Xchange v Formacon Building Services [2014] NSWSC 1602 (5 November 2014, concerning events that took place in June 2014) McDougall J observed that section 13(7) is "prohibitory", going on to say that a payment claim not accompanied by a Supporting Statement is not properly served [36].

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