The NSW government has announced that the Building and Construction Industry Security of Payment Amendment Act 2018 (Amendment Act) and the corresponding Building and Construction Industry Security of Payment Amendment Regulation 2019 (Regulation) will commence later this year on 21 October.
The Amendment Act introduces significant reforms to security of payment legislation in NSW, as outlined in our previous update.
As these reforms are set to take effect in October, it is important to prepare for the main changes, which include:
- reintroducing the requirement for payment claims to be endorsed under the Act;
- reducing the time for head contractors to pay subcontractors after receiving a payment claim from 30 business days to 20 business days; and
- creating a statutory reference date on termination of a construction contract.
The changes made by the Amendment Act do not apply to construction contracts entered into before the commencement date (21 October 2019).
The accompanying Regulation, which is to commence on the same date, contains reforms critical to the commencement of the Amendment Act.
For more information on the Amendment Act and accompanying Regulation, please see our previous updates here and here.
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