The NSW Government has announced changes to the NSW Security of Payment Act which will come into effect on 21 October 2019. Changes include the establishment of the Building and Construction Industry Security of Payment Amendment Act 2018 No. 78 and changes to the current Building and Construction Industry Security of Payment Act 1999:

• The concept of “reference dates” has been removed with payment claims able to be made on and from the last day of a month (irrespective of a contract’s provisions); So when a builder says he wants your claims in by the 25th of the month you will be actually using your allocated day from the end of the preceding month.
• Payment claims must once again state they are “made under the Act”; Understand that this is a return to the future and as history has shown it may be better to only use the endorsement when you will act using the powers of the SOP. Endorsing every invoice can be counter-productive and leave a jurisdictional issue for defence of multiple claims be month. The reality is you won’t launch an action under SOP for every invoice.
• Subcontractors must be paid within 20 business days (instead of 30 business days);
• Claimants in liquidation cannot use the Act;
• Errors in adjudication determinations can be severed;
• Penalties have increased penalties for a number of offences (inclusive of failing to provide a supporting statement); and
• Directors and management personnel will be exposed to prosecution if a company claimant commits an offence under the Act.

These changes will apply to contracts entered after 21 October 2019.

Find out more here.