Security of Payment

Those working in the building and construction industry are back on deck today.  I heard them outside my window at 7.30am this morning.  What better time than the start of a new year to get your debtors in order, and try to minimise your debtors for the coming year.

If you don’t already endorse your invoices with references to the relevant Building and Construction Industry Security of Payment legislation in your jurisdiction, then let this be the last day!

A security of payment regime now operates in all jurisdictions across Australia, so no excuses if you work in the building and construction industry.

The regime applies to builders and tradesmen, architects and engineers and people in surveying or landscaping.  Under the legislation, there is a fast-tracked system for payment of outstanding invoices that allows you to recover outstanding sums outside of an expensive and protracted court process.  The alternative is expedited adjudication, on the papers (without need for court attendances) for payment claims that fit within the ambit of the relevant legislation.

To be a payment claim that triggers the operation of the legislation in your jurisdiction, an invoice must clearly state that it is a payment claim made under the relevant legislation for example:  “This is a payment claim made under the Building and Construction Industry Security of Payment Act 2002 (VIC).”

If the payment claim is not paid in accordance with the relevant contract or payment claim terms, then the claimant can apply for fast-tracked adjudication in accordance with the process set out in the relevant legislation.

The process is very expedient and cost effective and we encourage people who work in this area to update their processes and accounting systems to incorporate this small adjustment into their invoicing system.  People who work in this industry are increasingly familiar with the security of payment process, and we find that people who endorse their invoices with the reference to the relevant legislation as set out above are significantly more likely to get paid, and paid on time.

At Holdstock Fittipaldi Law, we have experience with every step of the adjudication process in several jurisdictions, including appeals, and are very happy to help step you through the process right across the country.

The adjudication process is highly regulated and the time frames are strict, so if you have invoices already endorsed and debtors have not paid yet, contact us without delay to see if you still have rights under the legislation to pursue those debtors.