Building & Construction Industry Security Of Payment Act 1999
The Labor Party with the support of the Independents were encouraged by the CFMEU to provide a means of expediting payment to sub contractors in the New South Wales Building & Construction Industry.
In 1999 the legislation, Building & Construction Industry Security Of Payment Act 1999 No 46 was brought into being in the New South Wales Parliament.
The Security Of Payments Act NSW commenced on the 26th March 2000.
Since its inception the Security Of Payments Act NSW has assisted many sub-contractors, suppliers and consultants recover money they are owed for construction work and or related goods and services for a lot less and a lot quicker than before the BCISPA 1999 commenced.
The Building & Construction Industry Security Of Payment Act 1999 is extremely powerful legislation.
Under the Security Of Payments Act NSW a claimant serves a payment claim on the respondent. The respondent must either pay the payment claim in full or provide a payment schedule to the claimant within 10 business days of receiving the payment claim.If the Respondent doesn’t pay in full or provide a payment schedule within the allowed time the money owed becomes a statutory debt. This means that the claimant can go to the appropriate court and ask for “Summary Judgement”. Summary Judgement is a judgment entered by a court for one party and against another party summarily, i.e., without a full trial. Such a judgment may be issued on the merits of an entire case, or on discrete issues in that case. Once you have “Judgment” you can begin enforcement proceedings using all of the traditional debt collection methods. The alternative to applying for summary judgment is adjudication. If you have received a payment schedule that you dispute you must apply for adjudication within 10 business days. If you haven’t received a payment schedule to be entitled to apply for adjudication you must serve a 2nd chance notice on the respondent giving them a further 5 business days to pay in full or provide a payment schedule. The claimant then has 10 business days from receipt of a payment schedule or at the expiry of the 5 business days to apply for adjudication. The adjudication must be lodged with an ANA and an exact copy served on the respondent. The adjudicator has 10 business days to determine the application from the date of acceptance. The adjudicators fee is payable by the claimant initially but is added to the debt of the respondent if the claimant is mostly successful. The respondent then has 5 business days to pay. If the respondent doesn’t pay in this time the claimant can apply for a adjudicators certificate file it with the appropriate court entering judgment. Once you have “Judgment” you can begin enforcement proceedings using all of the traditional debt collection methods.
The Security Of Payments Act NSW has brought more certainty to the debt recovery process for contractors, it has made debt collection for contractors more affordable, and it happens fast to help alleviate cash-flow issues sooner rather than later.
To find out more about the Building & Construction Industry Security Of Payment Act 1999 call or email RECOUP Contractor Debt Recovery for expert advice.
RECOUP Contractor Debt Recovery Are Your Best Option For Preparing & Running Security Of Payments Act Payment Claims & Adjudication Applications