Building and Construction Industry Security of Payments Act 1999

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Construction
Management

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Table of Contents
Introduction.................................................................................................2
Working of this Act......................................................................................3
Purpose of introduction of the Act...............................................................4
Working of the Act relating to regular court actions...................................5
Recent amendments for Subcontractors.....................................................6
Conclusion...................................................................................................8
References..................................................................................................9

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Introduction
In this report, the “
Building and Construction Industry Security of
Payments Act 1999” hereinafter referred as the “Act” will be analysed,
which is introduced by the government of New South Wales. Through this
Act, the government aims to address key issues which are faced by
contractors, sub-contractors, and suppliers when they receive their
payment while offering their products and services (Kallipolitis, 2019).
This report will focus on analysing the role of this Act in ensuring timely
payments of different parties in the construction sector of New South
Wales by understanding how this act works. This report will also evaluate
the reasons for introduction of this Act by the government and determine
the reason for its introduction. The working of this act in relating to the
operations of “regular court actions” will also be analysed in this report.
Lastly, the amendments which are introduced in this Act for protection of
the rights of subcontractors by ensuring timely payment from builders will
be analysed along with evaluation of rights given pursuant to this Act to
subcontractors in relating to ownership of the property.

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Working of this Act
The provisions of this Act apply on individuals and entities operating in
both public and private sector, and it is focused on introducing policies
that are targeted towards implementing time limitations on parties and
different scenarios. Through this Act, the government aims to ensure that
parties receive the payment for the products and services which they
offered within the given timeframe (BackerMcKenzie, 2019). The
provisions of this Act allow parties to freely move cash in this section
which supports the economic growth of the country as well since not
receiving payment at all or not receiving it within the given timeframe is a
key challenge faced by parties while offering construction relating
services in the country. This Act works by giving statutory rights to parties
by making sure that they receive their payment for products and services
within the given timeframe. This can be understood by the provisions
given under section 14 of this Act in which provisions regarding payment
schedule is given (Austlii, 2019). These provisions apply to the operations
of contractors, subcontractors and other parties who are involved in these
practices.
This Act implements liability on parties through which other parties
receive the right to receive payment. Under section 15, the provisions
regarding penalties are given for parties that failed to ensure that the
payment is made to other parties of the contract as per the time
mentioned in the payment schedule (Bowyer, 2018). This section also
includes provisions for terminating the contract due to failure of payment
by parties. The working of this Act also provides rights to parties to make
an appeal in the court for enforcing their payment. The working of this Act
is become stricter for protection of rights of parties by introduction of the
“Building and Construction Industry Security of Payment Amendment Bill
2018”. The amendments are targeted towards ensuring that parties pay
on due dates and they are able to receive their payments without getting
help from third parties (SSO, 2018). The government has purposefully