Building and Construction Industry Security of Payment Bill 2009

Comment period closed 11 September 2009.

Minister's media release (19 Aug 09)

•  Overview of the Building and Construction Industry Security of Payment Bill 2009 (6 pages)
•  Draft Building and Construction Industry Security of Payment Bill 2009 (67 pages)

The objective of the Building and Construction Industry Security of Payment Bill 2009 (The Bill) is to improve payment practices in the building and construction industry to ensure progress payments are made in a timely manner.

The legislation establishes an entitlement for certain persons who carry out construction work (or who supply related goods or services) to timely payment for their work and the goods and services they supply.

The legislation uses an ‘adjudicator’ to ensure that speedy and efficient progress payments are made during the course of a contract without resorting to time consuming and costly arbitration or litigation.

The legislation does not abolish arbitration and litigation in building disputes; in effect it postpones these remedies until the end of the contract. Final financial payments or restitution is determined at the end of the contract under the provisions of the contract.

It maintains the progress payments under dispute and ‘keeps the money flowing down the contractual chain’ to parties who have a right to payment.

It is intended that the Bill will assist those parties that enter into a contract after the commencement of the Bill. Those contracts that commence prior to the enactment of the Bill will not be subject to the payment practices established in the Bill.