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The Building Industry Fairness (Security of Payment) Act 2017 was legislated because of payment disputes that commonly happen in Australia’s building and construction industry. It is no surprise that these disputes can’t be avoided. Especially in a city like Brisbane where the construction industry is also at its peak, similar to Sydney and Melbourne.
Through the Building Industry Fairness (Security of Payment) Act 2017, builders and suppliers have legal rights to receive progress payments and their principals are expected to serve them the amount or a payment schedule. This was also implemented to resolve insolvencies in the building and construction industry in the country.
The construction industry is well-known for late payments and non-payments. It makes up about 20% of all insolvencies or cases of those who are unable to pay debts.
Basically, the industry is approximately:
The Security of Payment Act is a legislation that ensures anyone who carries out construction work or supplies building materials receives progress payments. This also provides a faster and inexpensive process in resolving payment disputes.
Additionally, the Act is implemented across Australia and differs in each state in terms of its rules or execution.
These rights cannot be contracted out of. “Paid when paid” provisions are also now void.