Participants in the NSW construction industry need to
understand and be prepared for major changes to the security for
payments regime as it applies in that state.
On October 21, 2019, significant changes to New South Wales
("NSW") security of payment laws come into effect with
the commencement of the Building and Construction Industry
Security of Payment Amendment Act 2018 and corresponding
Regulations.
The changes seek to simplify the processes for progress payments
and adjudication, and follow some of the recommendations in the
December 2017 Review of Security of Payment Law by
Mr. John Murray AM (commissioned by the Australian Government).
The major changes include:
- Removal of the concept of
"reference dates"—which Mr. Murray AM observed has
been the subject of confusion in industry and inconsistency in
different courts—in an effort to provide a simpler
entitlement to make monthly payment claims (or more regularly where
the contract allows).
