New amendments to the NSW BCISOP Act, passed by the NSW Parliament in November 2013, commenced on 21 April 2014. The changes are:
- introduce prompt or maximum payment terms for progress payments
- require that payment claims made by a head contractor include a supporting statement declaring subcontractors it has engaged, have been paid what is due and payable
- remove the requirement that a payment claim must state that it is being made under the Act
Very Importantly to note that the default due date for payment provisions under the Act has significantly changed which will affect the timing of s17(2) second chance notices and the time to proceed to court where there is no payment schedule. The new provisions may summarised (seek legal advice to make sure) as:
- Contracted to the Principal – 15 business days
- Contracted to another contractor on a non-residential project – 30 business days
- Contracted to another contractor on a residential project – 10 business days
The amendments will apply to contracts entered into from 21 April 2014. Further details on the changes are provided in the NSW Government fact sheets below: