Security Of Payments Act NSW
Security of Payments Act NSW laws for contractors in New South Wales has never been more important. Todays news confirming that corruption in building & construction in New South Wales is rife on construction sites such as Barangaroo should be a concern for all involved in the industry. A clean broom through the CFMEU to ensure fairness and equity for all contractors is a must. But until this happens this makes the Security Of Payments Act NSW more valuable than ever. The endemic corruption in the CFMEU is bringing our industry to it’s knees. Security Of Payments Act laws are getting contractors paid but the need for The Office of the Australian Building and Construction Commissioner to be re-instated has never been greater.
Security Of Payments Act NSW Benefits
The benefits for claimants are the reasons why you cannot ignore such powerful legislation. The CFMEU were the driving force behind the creation of the Security Of Payments Act NSW in the late nineties. Unfortunately though the CFMEU seem to have lost their way. The implementation of the Security Of Payments Act NSW in 1999 was purposely designed to ensure continuity of payment to contractors who otherwise couldn’t stand up to bullies, much to the CFMEU’s credit.
The benefits of the Security Of Payments Act NSW means contractors can claim for the work they have carried out and obtain payment without having to resort to the type of corruption that has tainted the industry.
Contractors shouldn’t have to pay off corrupt union officials either to win work or get paid for it. The Security Of Payments Act NSW means once work has been carried out an enforceable judgement debt can be obtained through a quick, streamlined and affordable adjudication process lawfully with the full support of the courts and justice system generally.
Security Of Payments Act NSW Restrictions
Do not delay making a claim.
The Security Of Payments Act NSW has a time limit on making claims of 12 months after last carrying out work under the contract.
Also, claimants are only permitted to make one claim per month.
A further restriction is the prohibition of the use of the Security Of Payments Act NSW against homeowners who reside in the property where the work was carried out.
And naturally the Act only applies to work carried out in the state of New South Wales.
Security of Payments Act NSW Guidelines
The process is very simple, about six steps. The process is very quick, about 6 weeks. The process is great bang for your buck.
- Contract formed
- Work carried out
- Reference date occurs
- Payment Claim served (2 weeks)
- Payment Schedule received (2 weeks)
- Adjudication (2 weeks)
Security Of Payments Act NSW Results
Getting judgement is half the battle. The Security Of Payments Act NSW makes this highly probable and is supported by complimentary legislation for enforcement.
According to New South Wales Government statistics approximately 94% of claims are determined in favour of the claimant under the Security Of Payments Act NSW adjudication process.
Adjudicators are empowered to award the full amount of a Payment Claim made under the Act if they are satisfied they have jurisdiction under the Security Of Payments Act NSW and the value of the Payment Claim is correct.
Security Of Payments Act NSW Enforcement
New South Wales is by far the best state to enforce the judgment of a construction debt in. An adjudication determination made in your favour under the Security Of Payments Act NSW is a fast track to a judgment. Registering a Security Of Payments Act NSW determination with a court of competent jurisdiction (Local Court up to $100K, District Court $100K – $750K, Supreme Court $750K and upwards) provides you with a judgment debt that you can enforce as if you had obtained a judgment in traditional court proceedings.
The Contractors Debts Act 1997 in conjunction with the Security Of Payments Act NSW makes it possible to have the debt reassigned to the principal contractor.
So, using the Security Of Payments Act NSW means that the chances of recovery are doubled and that all of the available means of enforcing a court judgement order can be invoked against either the contractor or the principal contractor.
Security Of Payments Act NSW Know How
Critically, we all need to learn form our life experiences. And Security Of Payments Act NSW is a mechanism that enables tradesmen, subcontractors, contractors, consultants, suppliers, all to learn many improvements for their daily business practices that will assist in every phase of a building & construction industry project.