Security of Payment (SOP)

Every day, individuals and organisations enter into contracts for building and construction – and sometimes disputes arise over payment.

The Building and Construction Industry Security of Payment Act 2002 (known as the SOP Act) helps ensure that any person who carries out construction work or supplies related goods and services under a construction contract gets paid.

It is designed to provide a fast and inexpensive process to recover payments due under a construction contract, without the need for lawyers to become involved.

The VBA monitors the operation of the SOP Act. It does not nominate adjudicators or take part in payment disputes. This is the role of Authorised Nominating Authorities (ANAs), who are authorised by the VBA to perform this service.

The following video provides an introduction to the Security of Payment Act.

Note: The information contained in this section relates to contracts entered into on or after 30 March 2007. If you require information about Security of Payment relating to a contract entered into prior to 30 March 2007, please contact the Victorian Building Authority.

The SOP Scheme does not apply to contracts to carry out domestic building work with a building owner. These contracts come under the Domestic Building Contracts Act 1995.

Further information on the Security of Payment Scheme can be found here:

Fact Sheet No.1The Security of Payment Scheme

Fact Sheet No.2Changes to the Security of Payment Scheme