SoCLA reports on Security of Payment in the Australian construction industry

Phillip Greenham, chairman of the Society of Construction Law Australia (SoCLA) and partner in Minter Ellison’s construction division, said the current lack of national uniformity in the Security of Payment system that adjudicates construction sector disputes results in a range of unnecessary costs that outweigh any commensurate benefits of the system.

He was speaking on the publication of SoCLA’s ‘Report on Security of Payment and Adjudication in the Australian Construction Industry’.

The report was prepared by SoCLA’s Australian Legislative Reform Subcommittee and calls for the introduction of a uniform Security of Payment system throughout Australia.

Greenham said: ‘Since 1999, all states in Australia have passed legislation providing for adjudication of disputes in the construction industry — yet each state has a different system. Western Australia and the Northern Territory followed international practice and enacted an evaluative system that works well. The society’s research suggests broad support for a single system operating across all of Australia, but no progress has yet been made in achieving harmonisation.’