Last Updated on 22/01/2026 by Damin Murdock
On 20 November 2013, the Building and Construction Industry Security of Payment Bill 2013 (NSW) was given royal ascent. The new laws make substantial changes to the Building and Construction Industry Security of Payment Act 1999 (NSW) (the “ACT”).
This article will discuss the most notable ways in which your business has been affected by these legislative changes, namely;
- changes to the way progress claims are made;
- due dates for payments of progress claims; and
- the requirements of supporting statements from head builders.
Claim Changes
Previously a payment claim was to be made in accordance with s 13 of the Act. There, it was required that you: detail the type of work carried out; the amount claimed; and include a statement that the claim was made in accordance with the Act.
The Act now provides that any payment claim for any work carried out on a construction contract, regardless of form, is deemed a payment claim under the Act (unless the claim is for work done on residential property).
Change in payment dates
Previously, payments of a payment claim were to be made within 10 business days of the payment claim being made, pursuant to s 14of the Act. However, the new law splits the maximum payment time as follows:
- a payment to a sub-contractor from a head contractor is payable within 30 business days from the date of the payment claim, or, earlier if stipulated in the contract; and
- a payment to the head contractors from the principal is payable within 15 business days of the demand being made, or, earlier if stipulated in the contract.
Sworn Statements
Finally, the head contractor is now required to attach a sworn statement that states they have paid their contractors what is payable, before they can make a valid claim to the principal for a progress payment. If it is found that the sworn statement contains false statements, penalties of up to 200 penalty units ($22,000.00) and/or three (3) months in prison may apply. There is also a provision for the establishment of a statutory body to investigate the truth of these statements.
Tips:
- Make sure you keep your staff payments up to date.
- Stay on top of your administrative tasks.
- Treat all claims as if they are made under the Act.
If you have any questions in relation to this article, please contact Damin Murdock at Leo Lawyers on (02) 8201 0051 or at office@leolawyers.com.au.
DISCLAIMER: This article is not to be taken as legal advice and is general in nature. If you require specific advice, please contact us.
Damin Murdock (J.D | LL.M | BACS - Finance) is a seasoned commercial lawyer with over 17 years of experience, recognised as a trusted legal advisor and courtroom advocate who has built a formidable reputation for delivering strategic legal solutions across corporate, commercial, construction, and technology law. He has held senior leadership positions, including director of a national Australian law firm, principal lawyer of MurdockCheng Legal Practice, and Chief Legal Officer of Lawpath, Australia's largest legal technology platform. Throughout his career, Damin has personally advised more than 2,000 startups and SMEs, earning over 300 five-star reviews from satisfied clients who value his clear communication, commercial pragmatism, and in-depth legal knowledge. As an established legal thought leader, he has hosted over 100 webinars and legal videos that have attracted tens of thousands of views, reinforcing his trusted authority in both legal and business communities."
