Security Of Payment Act NSW
Power to the people, that’s what the Security Of Payment Act legislation is all about.
The Security Of Payment Act NSW turned the tables on big companies who would delay payment to small businesses, tradies, subbies, contractors in general, consultants, suppliers, etc, just because they could.
Security Of Payment Act NSW is Power to the People
This is literally true.
During the building and construction boom of the 80’s Australia begun the transition of the majority of work being done in the industry by employees of building companies to the majority of work in the industry being done by sub-contractors. May tradies who once worked for a building company were now not only self employed but were also now employers and were thrust into not only coping with customer relations but also employee relations. Pressure !
The next decade was a traumatic time for the building and construction industry and all of the new subcontractors that had been birthed in the boom of the 80’s. Trade specific companies had been born and building companies in many instances were reduced to little more than project management companies.
This all meant that by the late 90’s the arrival of the Security Of Payment Act NSW was much needed. Big companies could hold out on paying subbies almost indefinitely because; 1) if the subbie reacted adversely to the terms, as dictatorial as they were, of the company they were working for they were swiftly told to pull their heads in and get on with the job, 2) even if the subbie did start legal proceedings in a court, which was the only option prior to the Security Of Payment Act NSW, the larger company with more money would simple draw out proceedings until either the claimant ran out of money of will to keep up the fight.
In the late 90’s, together with the support of Fred Nile of the Christian Democrat Party, the Labor Government of the day brought the Security Of Payment Act NSW legislation successfully before the parliament and enacted the legislation.
By 2000 the Security Of Payment Act NSW legislation was up and running and it was a matter of no time before it was being used to resolve both small and large, up to $90m, building and construction payment disputes.
Security Of Payment Act NSW has 3 Key Benefits
The Security Of Payment Act NSW legislation helps people enforce their rights under a construction contract in respect of entitlement to payment. The Security Of Payment Act NSW legislation protects people from losing their entitlement to payment for work completed when they suspend work under the Security Of Payment Act NSW legislation. The Security Of Payment Act NSW legislation enables people to recover payment direct from the principal.
The building and construction industry is the most litigated industry on the planet, the most dispute prone industry in the world. Security Of Payment Act NSW legislation leads the world in providing relief for claimants in this industry. People who are entrenched in the building and construction industry are depriving themselves of powerful tools if they don’t make the effort to learn about Security Of Payment Act NSW and make use of it.
Claiming under the Security Of Payment Act NSW
This is a fast and brief process, but also a highly technical one.
Knowing what to do when, and how to do it is critical to success.
The Security Of Payment Act NSW process beings with the Payment Claim.
Suspending Work under the Security Of Payment Act NSW
This is a very important part of the Security Of Payment Act legislation to understand. If a respondent doesn’t serve a Payment Schedule or doesn’t pay a Payment Claim in full by the due date for payment, and the claimant has serve Second Notice on the respondent, the claimant can suspend work under the Security Of Payment Act.
Too many times claimants are forced into a situation where they are told that they must continue working even when payment of their claims is not forthcoming. Subbies are told that if they don’t keep working another subbie will be brought in to replace them and that they will get paid nothing. This is a problematic situation for many reasons, but mostly because it opens the door for a dispute as to which subbie completed what work and who is liable for what defects.
Suspending work under the Security Of Payment Act NSW means a claimant is not liable for costs incurred or damage suffered by the respondent once the claimant is entitled to suspend works under the Act.
A claimant can only suspend work under the Security Of Payment Act once a proper notice has been served and once the time given under that notice has expired. This notice is known as a “Notice To Suspend Work”.
Serving Payment Withholding Requests under the Security Of Payment Act NSW
The ability to do this has been the difference many times between getting paid and missing out altogether.
Serving a Payment Withholding Request is the first step in a highly technical process that begins at the time of applying for Adjudication.