King & Wood Mallesons

Asia-Pacific 100 position: 2

Follow-up: owners and head contractors beware. Any claim can be a SOP claim

The Building and Construction Industry Security of Payment Amendment Bill 2013, which will amend the Building and Construction Industry Security of Payment Act 1999, has now been passed and will come into effect on a day to be appointed by proclamation.

Since King & Wood Mallesons’ last free issue, there has been one amendment to the bill. A new section 12A allows for the regulations to provide for retention moneys held by a head contractor to be held in a trust account. The regulations may include procedures for payments out of any trust account and the resolution of disputes regarding the operation of trust accounts. They may also specify bodies that may offer trust accounts. Any breach of any such regulation may be punishable by a penalty up to $22,000 (£12,400).

No regulations have been put forward yet but the earlier New South Wales government response to the Collins Report gives some inkling of what may be in store…

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Level 61, Governor Phillip Tower
1 Farrer Place
NSW 2000

Jurisdiction: PRC/Australia
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