Building and Construction Industry Security of Payment Act 2009 (SA)
The Building and Construction Industry Security of Payment Act 2009 (SA) commences in operation in South Australia on 10 December 2011.
Who and what does the new Act apply to?
The Act will affect virtually everyone involved in the construction industry - participants and users alike - whether they are owners, government, councils, developers, architects, superintendents, head contractors, subcontractors, suppliers or consultants.
The Act applies to all contracts or other arrangements for construction work or the supply of any goods and services related to construction work entered into after 10 December 2011.
What are the changes?
The Act introduces a system of rapid adjudication to ensure that payment claims in the construction industry are resolved quickly.
The Act will have a significant effect on construction contracts, in particular, by providing a statutory right to progress claims, by making "pay when paid" clauses ineffective and by introducing maximum time frames within which payment claims must be responded to - and paid.
Whilst the provisions of the Act are relatively straightforward, they are also perscriptive and unforgiving. It is vital that industry participants understand the legislation and its ramifications for the way they do business.
When does the new Act commence?
The Building and Construction Industry Security of Payment Act 2009 commences on 10 December 2011.
Materials to help you understand the Act:
Click here for an overview of the Act.
Click here for a flow chart of the processes and time limits for claiming, resisting and enforcing payment claims under the Act.
Over the coming weeks we will publish a series of Alerts examining different aspects of the Act.
Click here for Alert 1 (Application of the Act and the statutory right to progress payments)
To be uploaded Alert 2 (Payment Claims)
To be uploaded Alert 3 (Payment Schedules)
To be uploaded Alert 4 (Adjudication and enforcement)
Training for your business
Lynch Meyer has conducted numerous training seminars for industry groups (CCF, AMCA, MCASA, PIASA, UDIA and HIA) for their members, and seperately for our clients. Please contact us if you would like to discuss training for you or your business.
Contact Us
Lynch Meyer's construction team has unrivalled understanding of the Building and Construction Industry Security of Payment Act 2009. If you need assistance to understand the Act or require advice on its impacts for your business or contracts, please call your regular contact at Lynch Meyer or our senior construction specialist, Michael Battye on 8236 7661.
