Security of Payment amendments passed by NSW Government

The NSW Government has passed the Building and Construction Industry Security of Payment Amendment Bill 2018, that will make many changes to the operation of security of payment (SOP) practices in the construction industry. An important change includes the removal of reference dates, instead allowing a payment claim to be served from the last day of the month in which the construction work was first carried out or an earlier date as specified in the contract. Other changes include the insertion of a variety of new offences and increased penalties for non-compliance, a code of practice, a reduction of the maximum time for payment from 30 to 20 business days, and the creation of an express right to withdraw from an adjudication application.

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