The proposed SOPA changes...

A Summary of the proposed SOPA changes:

Building and Construction Industry Security of Payment Amendment Bill 2013 – Summary of changes

1.    Prompt payment provisions.

These amendments will not apply to a residential construction contract that is connected with the main contract. Exception does not apply to other work that may be described as residential e.g. high rise apartments and other commercial developments.

Proposed s11(1):

·               A progress payment to be made under a construction contract is payable in accordance with the applicable terms of the contract.

Proposed s11(1A):

·               A progress payment to be made by a principal to a head contractor becomes due and payable on the date occurring 15 business days after a payment claim is made.

Proposed s11(1B):

·               A progress payment to be made to a subcontractor becomes due and payable on the date occurring 30 business days after a payment claim is made.

Proposed s11(1C):

·               The existing due and payable provisions for construction contracts connected to an exempt residential contract are retained.

Proposed s11(8)

·               Any provision in a construction contract that provides for payment of a progress payment later than the periods stipulated in s11(1A) and s11(1B) are void.

2.    Removal of existing requirement under s13(2)(c) for a statement that a payment claim is made under the Act.

   

3.    Requirement for a payment claim to be accompanied by a supporting claim.

Proposed s13(7):

·               A payment claim submitted by a head contractor to a principal must attach a declaration that all subcontractors and suppliers have been paid all amounts that have become due and payable in relation to the construction work concerned.

Maximum penalty: $22 000

Proposed s13(8):

·               To serve a supporting statement with knowledge that it is false or misleading in a material particular is an offence.

Maximum penalty: $22 000 or 3 months imprisonment or both

4.    Investigation of compliance with provisions regarding supporting statements

Proposed s36 to s36B:

·               Appointed authorised officers (public service employees) may require a head contractor or associated persons to provide information or documents relating to compliance with the new provisions of s13 regarding supporting statements.

Maximum penalty: $22 000 or 3 months imprisonment or both

Not happy, Jan.

Till next time....