As stated in our previous article – in November 2018 amendments were made to the Building Construction Industry Security of Payment Act 1999 (NSW). The amendments did not automatically come into force, with it being necessary for NSW Fair Trading to consult with the construction industry to see when the new laws should commence. Whilst there still remains no defined date for when the amendments will come into force, last week the NSW government indicated that the amendments to the Act will commence in a singular tranche at the end of 2019. Furthermore, the NSW Government also released the draft Building and Construction Industry Security of Payment Amendment Regulation 2019 which is required to support some of the amendments. The NSW government has advised that the amendments to the regulation will likely be finalised and published by the middle of this year, with the amendments to both the act and regulation to come into effect three months later.
With the proposed amendments likely commencing at the end of 2019, it is necessary that parties involved in construction projects in NSW should consider whether their contracts and project practices will comply with the amendments.