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Posted 19 June 2014
Category: Security of Payments
On 20 November 2013 the Building and Construction Industry Security of Payment Act 1999 (“the Act”) was amended so that the following new payment terms apply to all construction contracts (other than excluded construction contracts) entered on or after 21 April 2014.
Construction contracts for residential building work (as defined in the Home Building Act 1989) where the principal resides in or proposes to reside in the premises where the work is undertaken remain as excluded construction contracts (“residential contracts”). References below do not apply to these contracts.
The NSW Government is currently consulting with the industry on the appropriate model for cash retention moneys to be held in trust and has released a consultation paper which proposes that a trust fund for cash retention moneys be administered by the Office of the Small Business Commissioner (“OSBC”) as the statutory trustee, in a similar fashion to the current Retail Leases Bond Scheme.
***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.