Security Of Payments Act NSW Changes To Commence In 2019
The Changes are:
- introduce maximum payment terms for progress claims made under the Security Of Payments Act NSW
- require that payment claims made under the Security Of Payments Act NSW by a head contractor include a supporting statement declaring that all subcontractors have been paid what is due and payable up until the time of making the claim
- remove the requirement of the endorsement that states a payment claim is being made under the Security Of Payments Act NSW.
- statutory adjudication process
- compliance and director penalties
- code of practice for authorised nominating authorities
How These Changes will Affect Claimants:
- Better Payment Terms
- All invoices are now claims made under the Security Of Payments Act NSW
- Contractors cannot claim for subcontractors work without paying them for that work
How These Changes Will Affect Respondents:
- Limit on Payment Terms to subcontractors and from Principal Contractors.
- Payment Schedules must be served in response to all invoices
- Hefty penalties for falsifying subcontractor statements
What These Changes Mean For Principal Contractors:
- Principal Contractors must ensure they are not paying contractors without receiving a valid Subcontractor Statement
To understand how these changes will affect your business call for a personalised run down on the positives and negatives call and speak to a Security OF Payments Act NSW Expert on 1300732687
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