Security of Payment for contractors
Tuesday June 9 2015
Everybody involved in a building project should get paid for the work they do. Unfortunately, disputes sometimes arise over payment.
The Building and Construction Industry Security of Payment Act 2002 (SOP Act) helps ensure that anyone who carries out construction work or supplies related goods and services under a construction contract gets paid.
The SOP Act is designed to provide contractors with a quick, inexpensive and non-legalistic way to recover money owed to them and to resolve payment disputes through adjudication. It applies to construction contracts for work carried out in Victoria.
The VBA administers the SOP Act. It does not participate in payment disputes. This is the job of the Authorised Nominating Authorities (ANAs), who are authorised by the VBA to perform this service.
Security of Payment report
The VBA has published its first Security of Payment Adjudication Activity Statistics Report for 2013-2014. The report provides summarised adjudication data for the 2013-2014 Financial Year. The information in this report is based on data provided to the VBA by ANAs.
Some of the key findings for 2013-14 include:
- 244 applications for adjudication were lodged.
- The amounts claimed ranged from $471 to $14.1 million.
- The total adjudicated amount for all claims was $30.1 million.