Click here to call us +61 2 9929 0226
Posted 28 July 2021
Category: Security of Payments
Key Features of SOPA
SOPA sets out a statutory framework for:
Generally, in comparison to litigating in a court or tribunal, the SOPA process can be a quicker interim method to resolve progress payment disputes and obtain progress payments.
With the commencement of the Building and Construction Industry Security of Payment Regulation 2020 (NSW), owner occupier construction contracts entered into on or after 1 March 2021 are now caught by the SOPA regime. This change provides additional relief to residential builders as owner occupier residential contracts were previously exempt from SOPA. Residential builders will now be able to serve payment claims on owner occupiers and refer payment claims to adjudication under SOPA.
Strict time limits apply and construction industry participants should consider obtaining legal advice on the SOPA process to ensure they are not caught out by any non-compliance with the technicalities of the SOPA process. Failure to comply may have serious financial consequences.
For general information see: SOPA workflow and SOPA flowchart.
Generally, the SOPA regime is applicable to a written or oral contract for:
Goods being:
Services being:
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.