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Steve and Julianna

"Thanks Sam, Bryce and Julie for excellent service in recent months - estate matters, property transfers and resolution of debt disputes. Your services have been prompt, efficient, professional and considerate of our needs. But most of all, thanks for getting the results we sought. P.S. We think that Julie deserves a special mention for the property transfer. Patience and attention to detail got it over the line!"

How to Prevent the Family Court making Orders dealing with your Property

Family Law Property Orders The Family Court has power by virtue of the Family Law Act 1975 to make Orders altering the interests of parties of a marriage or defacto relationship to their property.  Such Orders may be made in respect of property settlement proceedings on the application of either party to a marriage or...

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"I have a Will, isn't that enough?": An Introduction to Modern Estate Planning

What is Modern Estate Planning? Modern Estate Planning is not just about making a Will, Power of Attorney and Appointment of Enduring Guardian. Modern Estate Planning is planning for the preservation of your wealth during your lifetime as well as planning for the succession of that wealth to your intended beneficiaries in the most...

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Planning for the Forseeable: Why Appoint an Attorney & Guardian?

…what if I suffer a serious injury, illness or trauma? Fundamental to every Modern Estate Plan is considering what will happen to you and your loved ones in the event that you suffered from a serious injury, illness or trauma during your lifetime. This involves: the appointment of trusted persons to act as your attorney or...

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Don't Risk more then you can Afford to lose: Personal Insurance Planning

What is Personal Insurance Planning? What would happen to you and your loved ones if for any reason you were unable to continue to earn an income? How long could you and your family maintain your current lifestyle or afford to make repayments on your house or investment loans?  Your ability to earn an income is probably the...

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Wills & Asset Protection Trusts: Why your beneficiary's circumstances are as important as yours

What is an Asset ProtectionTrust? (also know as a Testamentary Trust) A Asset Protection Trust is simply a Trust created by a valid Will and funded by Estate Assets. The Trust commences when the Executor finishes administering the Estate. There a many different types of Testamentary Trusts that can be established in a Will. ...

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Building & Construction Law

Roberts Legal law practice offers Commercial Solicitor, commercial law firm, building and contraction, security of payments act, disputes, claims, construction lawyer.Roberts Legal Solicitors act for builders, developers and sub-contractors of both residential and commercial properties as well as individual home owners. We can assist you in relation to both building disputes and construction contracts.

We have extensive experience in dealing with the Building and Construction Industry Security of Payment Act 1999. If you work in the building and construction industry and are not fully aware of the major benefits and serious potential consequences of this legislation for your business (see below) do yourself a favour and call us today to find out more or to request a free Payment Claim Validity Report for your business.

Guide to the Security of Payment Act

Building Disputes

We can assist you with any type of building dispute including:

  • Defective workmanship
  • Breach of Contract
  • Security of payment claims and adjudications
  • Insurance claims
  • Delay and liquidated damages claims
  • Debt recovery

Often strict time stipulations are contained in building contracts or apply where the Building and Construction Industry Security of Payment Act applies to the work. With most building disputes it is important to seek advice from an experienced building and construction lawyer as soon as it becomes apparent that a building dispute has arisen. For new home owners, this usually means before you take possession of your new home.

Construction Contracts

The absence of a proper or complying building contract for builders and sub-contractors can have serious adverse consequences on their ability to recover payment for works performed or costs associated with enforcing their rights. Standard form Quotation and Contract Terms & Conditions are effective and easy to implement for your business. We can help you implement effective quoting and contracting procedures and prepare Standard form Quotations and Contract Terms & Conditions that will enable your business to:

  • Comply with the statutory contract requirements prescribed under the Home Building Act
  • Limit liability
  • Obtain security for payment of Progress Claims
  • Avoid or reduce costs associated with disputes in connection with ambiguous or oral agreements
  • Recover legal costs associated with enforcement action
  • Enable your business to more easily serve valid Payment Claims under the Building and Construction Industry Security of Payment Act so that you can benefit from the substantial statutory rights that arise from the failure of a party to respond to a valid Payment Claim and/or invoke adjudication as an alternative dispute resolution option.

Not sure where your Contracts are lacking? For a fixed fee we will review your current standard form Quotation and Contract Terms & Conditions and provide you with a written advice. Click here to ask for one of our Building & Construction Lawyers to contact you today.

Home Building Act

The Home Building Act implies a number of conditions and warranties into any contract for residential building work. The Act also provides that a contract to which the Act applies must be; in writing, contain prescribed information and particulars and be signed and dated by the parties to it.

Significantly, the Home Building Act provides that where a contract for residential building work is not in writing or does not have a sufficient description of the work the builder is not entitled to damages or to enforce any other remedy in respect of a breach of the contract. Similarly, where Home Warranty Insurance is required a builder is not entitled to demand or receive payment of any money or carry out residential building work unless a policy of Home Warranty Insurance is in place and a copy of a Certificate of Currency in respect of that insurance has been provided to the home owner.

The Home Building Act also makes it an offence for a tradesperson to do any of the following work without a Contractor Licence:

  • Residential building work where the total cost of labour and materials is more than $1,000.00,
  • Electrical wiring work,
  • Plumbing, draining and gas fitting work, and
  • Air conditioning and refrigeration work (except plug-in appliances).

Where a Contractor Licence is required but not held the builder or tradesperson is not entitled to damages or to enforce any other remedy in respect of a breach of the Contract.

Download Consumer Building Guide (NSW Fair Trading)

Home Building Licence Check

Building and Construction Industry Security of Payment Act

Why is the Act significant?

The Act is significant because it provides for the following consequences: 

1. Where a contractor serves a Payment Claim (similar to a tax invoice) on a Principal Contractor (or Developer) and the Principal Contractor does not provide a Payment Schedule (a response) within the relevant time, the Principal Contractor becomes liable to pay the claimed amount to the contractor on the due date for the progress payment to which the Payment Claim relates regardless of whether a genuine dispute exists.
2.

Where a Principal Contractor has become liable to pay Payment Claim but has failed to do so, the Contractor may:

  (a) Obtain a Summary Judgment in the Courts for the amount of the Payment Claim and then recover payment by legal enforcement action, or
  (b) Apply to have the amount claimed in the Payment Claim assessed by an adjudicator.
 

 

Strict time limits apply in relation to Adjudication Applications.

 
3.

Where a contractor elects to commence Court proceedings to recover a Payment Claim that has become payable then:

 
  (a) Provided that the Contractor has complied with the Act, the Court will enter Summary Judgment against the Principal Contractor, and
  (b) The Principal Contractor is not entitled to bring any Cross-Claim or raise any Defence in relation to matters arising under the construction contract in the Court proceedings.

 

A Court will enter Summary Judgment when it is satisfied that there can be no Defence to a claim. This means that Judgment can be obtained relatively quickly and without the need for a hearing on the facts.

Significant costs and delays can, therefore, be avoided if Contractors can rely on the Act to enforce unpaid Payment Claims.

Obtain a free Guide to the Security of Payment Act.

How to comply with the Act

As a result of the severe consequences of failing to provide a Payment Schedule in response to a valid Payment Claim the case law that has developed in relation to the Act primarily relates to when a Payment Claim is valid. This is because there can be no Defence to a valid Payment Claim unless a Payment Schedule was provided.

Complying with the Act so as to serve valid Payment Claims can be difficult unless you know what you are doing and have an appropriate written contract in place.

If you are a builder or subcontractor and want to serve valid Payment Claims you should:

  • Ensure that your standard Contract Terms & Conditions are worded so as to give you the greatest chance that your Payment Claims will be valid under the Act, and
  • Consistently serve Payment Claims in accordance with the Act or your standard Contract Terms & Conditions.

Roberts Legal can prepare appropriate Standard Quotations and Contract Terms & Conditions for construction contracts to suit your business and advise you how to serve valid Payment Claims. We can also assist you to recover outstanding Payment Claims or have a dispute in relation to a Payment Claim determined by an Adjudicator.

Ask us a Building & Construction Law Question

If the information that you are seeking is not above please feel free to ask us a Building & Construction Law question. We will gladly provide you with our considered response.

View more FAQs

Building and Construction Law Testimonials

“I really like Sam Roberts’ article on Security of Payments. Too many commentators focus on the dispute provisions rather than the excellent process that Sam alludes to in his article. We are delighted to see contract clauses that encourage complying Payment Claims, as opposed to the current trend for "look around the corner" avoidance tactics. I commend Roberts Legal’s approach to encouraging people to get it right up front, rather than wait until there's a problem. It's a breath of fresh air. We strongly encourage all businesses in the building industry to insist on using a complying process as a business-as-usual practice to protect their entitlements. To this end we have developed a unique software solution to facilitate the process. www. thepowertool.com.au.”


John Lowry, Director The Power Tool Pty Limited

"I received the Payment Claim Validity Report this morning and it makes for a very worthwhile read. It is the most professional and thorough appraisal of any invoice that I have ever encountered. I take my hat off to Roberts Legal for their initiative."

Jim Gargen, Adamstown Antennas

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