Who can make claims under the Security Of Payment Act?
Those who can make a claim under the Act include:
- Contractors against principals / developers
- Subcontractors against contractors
- Suppliers against customers
- Plant and equipment hirers against clients
- Consultants against clients
Construction work and services can be claimed under the Act, even if the contract:
- is not written
- does not provide for progress payments
- has only a single payment to be made when the work is completed.
How do I make a claim under the Security Of Payment Act?
Your claim must be:
- made at the time stated in your contract or, if there is no time stated, on the last day of the month
- be in writing and addressed to the respondent
- describe the construction work, related good or related services for which you are claiming
- state the amount that you claim is due
- include the words “This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 NSW“, or a similar statement with that meaning (NB. the appropriate endorsement for your state is essential here), and
- refer to work done in the past 12 months only.
NB:You may want to include the above words on all your invoices for payment, to ensure all your claims are covered by the Act.
The claim may also include attachments containing:
- statements detailing the extent of the work completed
- completion certificates
- delivery dockets
- photographs, and
- other applicable contract document requirements.
To make a claim you must:
- establish the reference date for making your claim
- decide how much you are entitled to be paid calculated to the reference date
- on or after each reference date make a written payment claim and serve it on the party liable to make payment (the respondent). The claim will usually be a Tax Invoice
- serve the claim by delivering, posting or faxing it to the respondent. The contract may provide for other methods of service, and
- record the date of service (the date that the respondent receives the claim).
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