Changes to the Security of Payment Act to commence on 21 October 2019

Security of Payments

The NSW Government has proclaimed 21 October 2019 as the day on which the Building and Construction Industry Security of Payment Amendment Act 2018 No 78 will commence, introducing the following key changes to the Building and Construction Industry Security of Act 1999 (NSW) (Act):

  • the concept of “reference dates” has been removed with payment claims able to be made on and from the last day of a month (irrespective of a contract’s provisions);
  • payment claims must once again state they are “made under the Act”;
  • subcontractors must be paid within 20 business days (instead of the current 30 business days);
  • claimants in liquidation cannot use the Act;
  • errors in adjudication determinations can be severed;
  • penalties have increased for a number of offences (inclusive of failing to provide a supporting statement); and
  • directors and management personnel will be exposed to prosecution if a company claimant commits an offence under the Act.

The changes apply to all contracts entered into after 21 October 2019.