SA construction industry Security of Payments Act now in force

The Building and Construction Industry Security of Payment Act 2009, which commenced on 10 December 2011, brings the South Australian construction industry in line with the the other States.

The purpose of the Act is to ensure that people who carry out construction work or who provide related goods and services receive regular progress payments in relation to the work they are providing. It effectively introduces a ‘pay now argue later’ scheme which provides a process for prompt adjudication of claims.

The adjudication of claims under the Act does not determine ultimate liability, it simply resolves the immediate entitlement to payment.

The Act applies only to those construction contracts entered into after 10 December 2011. Whilst the Act generally applies to all construction work, and provision of related good and services, it does not apply to some types of construction work, including domestic building work where the party for whom the work is carried out will reside in the building.

To take advantage of the Act, those supplying goods or services in the construction industry will need to modify their payment claims or invoices. Those receiving claims will need to ensure they comply with the Act or face potentially damaging consequences.

We have extensive experience with security of payments claims and adjudications in other states. We can assist with any queries, and with making or responding to claims.  Please see our Construction and Engineering page for details.