The Security of Payment Act helps people who carry out construction work get paid
The SOP Act applies to most contracts for building work or the supply of related goods and services in Victoria and the contract may be oral, written or a combination of both.
This is 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 and 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.
In the 2021-22 financial year, the SOP Act resulted in 199 adjudicated matters, valued at $30 million.
To help answer any questions you may have about the SOP Act and how it is applied, the VBA has developed a Frequently Asked Questions (FAQ) fact sheet (PDF, 160.28 KB).
You can also visit the VBA’s Security of Payment webpage, which includes an overview of the SOP Act and a video explaining the SOP process.