NSW security of payments laws in effect


Thursday, 23 May, 2019


NSW security of payments laws in effect

NSW security of payments laws have come into effect, requiring head contractors to provide the principal with a supporting statement when serving a payment claim.

The statement is a legal declaration which asserts that the head contractor has paid all money due to subcontractors for work carried out in relation to the project. A head contractor who makes a false or misleading statement may breach the NSW security of payment legislation.

If the Australian Building and Construction Commission (ABCC) determines that a head contractor has provided a false or misleading supporting statement the matter may be referred to NSW Fair Trading, which is responsible for monitoring compliance with the NSW security of payment laws.

The ABCC is responsible for monitoring the security of payments requirements as detailed in the Code for the Tendering and Performance of Building Work 2016 (the Code). It may also investigate whether the head contractor has breached the Code by failing to comply with NSW security of payment legislation.

The maximum penalty for providing a false or misleading supporting statement is $22,000 or three months imprisonment, or both.

For more information, visit the website or contact the ABCC by phone 1800 033 388 or email enquiry@abcc.gov.au.

Image credit: © stock.adobe.com/au/kentoh

Related News

Sydney water restrictions

Sydney's first water restrictions in a decade were announced late May and came into effect 1...

Fluidra builds on competition pool success

Fluidra is adding to its stable of competition facility builds, with a contract to supply three...

Tweed Shire flicks the switch on largest solar install

Tweed Shire Council has installed its largest solar system to date on a council facility, saving...


  • All content Copyright © 2019 Westwick-Farrow Pty Ltd