Security Of Payment Act Information & Resource Centre
All of the information you need to know about the Security Of Payment Act & how it works is here
All of your questions about the Security Of Payment Act are answered here with full support provided
All of the help you need to use the Security Of Payment Act to get paid for your work is here
Search for Security Of Payment Act Information here…
Security Of Payment Act is a streamlined process – begin here
What to do when you are quoting work:
Strong Security Of Payment Act Claims start here. First you must get the important facts right. They are:
- Address your quote to the correct entity and include an ACN or ABN number.
- Make clear what your price / rates includes.
- Make clear what your price / rates excludes.
- Include all of your rates for additional works that may be requested as variations to the contract.
- Include your payment terms, and preferably make them 14 calendar days from date of service of claim.
- Include interest as an entitlement when payments are overdue.
What to do when you are asked to sign a contract:
You must understand what you are being asked to sign and what it will mean to you.
It is important to have signed a contract that doesn’t deprive you of the simple right to be paid for your work when you are making a payment claim under the Security Of Payment Act.
You must be aware of the key concerns in building & construction contracts. They are:
- Payment terms
- Time for (substantial) completion
- Restrictions on claiming variations
- Restrictions on claiming extension of time
- Liquidated damages
Setting up your project:
it’s more than just getting the job done. Its about having a structure that provides good efficient streamlined productivity for both the works and administration.
Security Of Payment Act law has a very strict set of requirements so you need to develop a suite of documents / templates that will:
- Manage the productivity of the works.
- Create records of all project events.
- Ensure you maximize profitability.
Contract Administration – Discipline:
You cant let yourself down here – it is vital to success.
But be warned; it is the most common failing of all stakeholders in the building & construction industry.
Why is it that way? It is partly lack of knowledge, partly laziness and lack of discipline, and partly complacency.
Determination is the order of the day on this one. You must be determined to conquer this. It isn’t just the difference between surviving it will be the difference between surviving and super profits.
And your Security Of Payment Act claims will be supercharged if they are underpinned by good contract admin. They key areas to focus on are:
- Staying on track to finish by the Date for Completion.
- Claiming extension of time, for delays caused by others, properly.
- Claiming variations properly.
- Preparing and serving required Notices properly.
- Managing defect issues.
- Claiming retentions.
How to make Payment Claims properly:
There is no point serving a claim that is defective in form, or invalid, or both. If you do, put simply; if it goes before an adjudicator to be determined under the Security Of Payment Act it will fail. And then you may lose the right to have another claim for that work recovered under the Security Of Payment Act ever.
You have got to get your payment claims right.
How to claim for Variations properly:
Getting paid for all of your work is a matter creating your right to it.
The Security Of Payment Act is a means to enforce your rights under a contract.
So you must ensure that you don’t give up your rights to be paid for variations because you haven’t met the requirements of a contract that set out how and when you must claim for variations.
How to avoid Liquidated Damages:
Its starts with understanding the contract. I see people lose tens and hundreds of thousands of dollars simply because they didn’t send a bit of paper to their client when their works were delayed by others.
Of course it goes without saying that if it is your fault you are running late you will pay the price. But id you are being delayed by others you must claim an extension of time to the time for completion under the contract as and when the contract sets out you must do so.
Not even the Security Of Payment Act can save you if you don’t stay on top of this properly.
What you need to know about applying for Adjudication:
If it comes down to needing a third party to resolve a payment dispute then this is the surefire way to do it.
Having your payment dispute resolved through adjudication under the Security Of Payment Act is the best way by a country mile to get paid for your work.
The right to apply for adjudications is determined by:
- The contract
- Work carried out / goods and services provided
- An available reference date
- A valid payment claim
- A valid payment schedule or a valid second notice
- A valid adjudication application
How to collect a debt owed to you:
Security Of Payment Act is a fast track to a judgment.
And once you have a court judgment you can use all of the legal means of enforcement available.
How to claim from the Principal Contractor:
When your client wont pay, by pass them and go direct to their client.
The Security Of Payment Act works hand in hand with the Contractor Debts Act to reassign the debt from your client to your client’s client.
How to recover your Retentions:
Getting your retention money back should be quick and simple. And with a Security Of Payment Act claim its is providing you do 3 things:
- Serve a notice of substantial completion under the contract
- Rectify any and all defects
- Serve a payment claim under the Security Of Payment Act on the 366th day after substantial completion