Building and Construction Industry Security of Payments Act 1999

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Building Law
10/9/2018
Student’s Name

1
Table of Contents
Covering Letter........................................................................................................................ 2
Report: Annexure A................................................................................................................. 3
Introduction..............................................................................................................................3
How does this Act work?......................................................................................................... 3
Why was it introduced?............................................................................................................4
How does the act work in relation to the regular court actions?...............................................6
What amendments are made in the act for sub-contractors?.....................................................7
Conclusion............................................................................................................................... 8
References................................................................................................................................9

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Covering Letter
To,
The Head/Administration,
Property Council of New South Wales
Sub: Report on Building and Construction Industry Security of Payments act 1999 (as
amended)
Respected Sir/Ma’am,
As a report on the subjective act has been asked by you, this is to state that the same is
prepared and attached hereunder as Annexure A. All the aspects asked by you are covered
under the said report and this is to hope that the presented report would fulfil the purpose.
You are requested to review the report.
Your Sincerely.

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Report: Annexure A
Introduction
The report provided hereunder is focused on the Building and Construction Industry Security
of Payment Act 1999 No 46 (hereinafter referred as an act). The act is applicable to New
South Wales State of Australia and is much significant in the area of construction contracts
(Minter Ellison, 2018). At the very first instance, the report will cover the manner in which
the titled act work and further the objectives of the same will be discussed. Apart from the
manner and objective, the report will further focus on the roles of courts in the application of
the act. Lastly, the recent amendments that have been introduced to the act by the houses of
parliament will be reviewed.
How does this Act work?
The act has been developed with the very clear objective that is to ensure the timely payments
of the parties to a construction contract. 38 Sections in total are there in the act (Bailey,
2014). Section 5 of the act says that construction work is a wider term that also includes an
extension, restoration, and repair. According to section 7 of the act, the act is applicable to
every construction contract including the verbal ones. Mainly three parties are there in a
construction contract and that are the owner, principal contractor, and sub-contractor.
According to the provisions of this act, every person who provides any goods or services to a
construction contract is eligible to receive the timely payment of his/her efforts. Now the
issue is to check that what is the time in which the payment must be credited to the accounts
of such people. The act described such time limits. This is not wrong to state that the act is a
complete guide in the area of providing justices to the victim parties in the area of the
construction contract. The act works in a very clear way. The same puts an obligation on the
owners/head contractors to for making the payment to head contractor/subcontractor.