Security of Payment – How to get paid in the Building and Construction Industry


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In the building and construction industry, cash flow for builders and subcontractors is critical for a business’ survival and growth.

Security of payment legislation is found in each State and Territory in Australia, with the purpose of protecting businesses by providing strict statutory time frames for payments relating to construction contracts.  In Victoria, the applicable legislation is the Building and Construction Security of Payment Act 2002 (Vic).

The invoice sent out is treated as a payment claim.  In almost all cases, failing to serve a payment schedule in response to a payment claim, served pursuant to security of payment legislation, can have dire consequences for the person or business who received the payment claim that is in dispute.

Where a respondent fails to provide a payment schedule within the requisite time frame, the value claimed will be deemed payable and an applicant will be permitted to seek summary judgment in court, or have the matter adjudicated under the relevant security of payment legislation.  This means the invoice has to be paid and cannot be disputed.

Our firm has extensive experience in building and construction law.  Should you require advice regarding security of payments, or building and construction matters generally, please contact our office on (03) 9311 8511.