Woman signing construction contract with contractor to build a house

Security of Payment Act: Understanding the Fundamentals

Caroline Hutchinson ||

In this second edition of Coleman Greig’s Building and Construction ‘In Practice’ series, Litigation and Dispute Resolution Principal Nick Kallipolitis discusses the Security of Payment Act (SOPA), and suggests a few simple steps that business owners can follow to help ensure that they’re able to take advantage of the Act most effectively.

As an expert in the Building and Construction industry, Nick has worked with a wide range of clients – from those looking to contest SOPA applications through to those requiring assistance with making a claim under the Act.  Unfortunately, over years of working within this area, Nick has encountered instances of parties lodging incomplete, or incorrect applications – issues which have resulted in businesses not receiving payments to which they were entitled.

In order to avoid such risks, Nick’s first and foremost piece of advice is to speak with an expert in Building and Construction law.  Further to seeking professional advice, Nick suggests ensuring that businesses:

  • Get your invoice right;
  • Get the company name right; and
  • Get the ACN right.

It’s also incredibly important to ensure that the above documentation accurately reflects the information found within the contract.

In addition to the above steps, it is just as important to:

  • Make sure that, where you have subcontractors working for you, you have attached supporting statements to your invoices wherever necessary; and
  • Make sure you’ve issued your invoices in accordance with the reference as stated in the contract, or otherwise in accordance with the Security of Payment Act.

There are many ways that Coleman Greig’s Building and Construction Law team can provide assistance to you and your business – so if you and your business are struggling to get a firm grasp on the Security of Payment Act, please don’t hesitate to get touch today.

Episode 1 – Understanding the Contract: More Bargaining Power for Subcontractors

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