Security Of Payments Act NSW
If you are having trouble with any of the following:
- Cant get on with your work because site not ready
- Argument about what work is included in the contract
- Your client wont agree to a variation for extra work
- Progress claims aren’t being paid on time
- Liquidated damages are being threatened when delays are not your fault
- You are thinking of walking off the job
- Final claim unfairly disputed
- Backcharges fabricated and deducted from payments
- Retentions being held unlawfully
Or read on to find out more….
Security of Payments Act NSW laws for contractors and subcontractors in New South Wales has never been more important.
Subcontractors are finding it harder and harder everyday to get paid for variations and for that matter get paid for any of their work on time.
Disputes are on the increase in the building & construction industry in New South Wales as a means of avoiding payment for work.
This makes the Security Of Payments Act NSW more valuable than ever.
Security Of Payments Act laws are getting contractors and subcontractors paid 94% of the time. What this means is that when a vaild payment claim served under Security Of Payments Act NSW laws goes to adjudication, the adjudicator determines 94% of the time that the claimant must be paid for their work.
Security Of Payments Act NSW
Benefits
The benefits of the Security Of Payments Act NSW legislation for claimants are huge and they are reasons why you must not ignore such powerful legislation.
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 do much about disputes and slow payment and or no payment.
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 spending massive amounts of money on solicitors in long drawn out court cases that can go either way..
The Security Of Payments Act NSW means once a determination in favour of the claimant for work carried out has been made by an adjudicator an enforceable judgement debt can be obtained through a quick, streamlined and affordable 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.
It is important to note that the previous restriction of 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 changed as of 1 March 2021. Residential building contracts entered into with the homeowner who resides in the property on or after 1 March 2021 are now subject to the Security of Payment Act NSW.
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.
1 – Contract formed
2 – Work carried out
3 – Time to claim occurs
4 – Payment Claim served (2 weeks)
5 – Payment Schedule received (2 weeks)
6 – 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.