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


Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.


More posts

Can i put my home on Airbnb?

Airbnb is a form of short-term rental accommodation. To add your property to Airbnb in NSW, you are required to meet several laws and regulations governing short-term rentals.

When are liquidators required to seek approval to retain legal counsel?

When does a liquidator (or the company he or she is appointed to) need court, creditor, or committee approval to validly retain a solicitor to act in a liquidation matter which is likely to extend for longer than three months?  The answer to this question has only recently been settled.

Proposed changes to building and construction law in NSW

The Building Bill 2022 (the Bill) is the key avenue through which the NSW Government has proposed to reshape the culture of the building and construction industry by eliminating poor performance and improving the quality of building statewide.

Can you dismiss an employee who fails to return to the office?

Slowly but surely, most employers are requiring employees to return to the office for at least a portion of their working week. Some employers continue to struggle with employees resistant to returning to the office or those who have an expectation that they can continue to work from home whenever it suits them.

New powers to combat phoenixing in construction

The rise of phoenixing in the building and construction industry in Australia in recent years has proved a significant challenge to regulators. Mismanagement of time or cashflow can quickly propel businesses into insolvency.

The NSW Building Commission’s extraordinary powers

In late 2023, the NSW Government passed the Building Legislation Amendment Bill 2023 (Amendment Bill). The Amendment Bill established the NSW Building Commission and granted it extraordinary powers to enter construction sites, inspect work and take away information and materials.

© 2024 Coleman Greig Lawyers   |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230