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Can I make a Payment Claim in every Invoice – Security of Payment Act, South Australia

Building and Construction Industry Security of Payment Act 2009 (SA)

The Building and Construction Industry Security of Payment Act 2009 (SA) commenced operating in South Australia on 10 December 2011. We at T Legal Lawyers know the Act well, having litigated the very first Application in the District Court of South Australia pursuant to the Act in late 2012.

The Act applies to almost everyone involved in the construction industry (including owners, government and its subsidiaries, developers, head contractors and subcontractors, suppliers, architects and consultants) for all contracts for construction work, or the supply of any goods and services related to construction work, entered into after 10 December 2011.

The Act introduces a system for ensuring that payment claims in the construction industry are resolved quickly. And YES, a payment claim can be automatically made in each invoice if it is drafted carefully. A that’s important, as a failure to address a valid payment claim can have catastrophic consequences for an unwary head contractor.

The Act is a powerful tool, if used properly, but there is an incredible need for attention to detail. Whilst the provisions of the Act are relatively straightforward, they must be followed exactly as prescribed. It is vital that building firms understand the legislation and its ramifications for the way they do business.

T Legal Lawyers are building law specialists in Adelaide, South Australia. We have conducted a number of training seminars for building firms and their staff. Please contact us on (08) 8240 4003 if you would like to discuss training for your building firm, including a “how to guide” of amending your invoices to ensure a payment claim is made each and every time you invoice.

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