Victorian Building and Construction Security of Payments Act 2002

VIC Security of Payments Act (with bulletin).

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Overview of the Security of Payment (SOP) Act

Security of Payment (SOP) Act Overview: 

The content below is general information only. For detailed information relating to the Victorian Building and Construction Security of Payments Act 2002, visit the Victorian Building Authority website.

Contracts: This applies to construction contracts from March 30, 2007, and also covers contracts between January 31, 2003, and March 30, 2007, with certain provisions.

Covered Work: Encompasses building, engineering, demolition, electrical, professional services, equipment hire, landscaping, maintenance, air conditioning, plumbing, and material supply.

Payment Types: Allows claims for progress payments, including final, single, and milestone payments.

Statutory Right: Contractors have a right to progress payments. Clauses like 'paid when paid' or 'paid if paid' are ineffective.

Process:

• Payment Claim: The claimant submits a payment claim to the respondent detailing the work and amount.
• Payment Schedule: Respondent pays or provides a payment schedule within ten days.
• Adjudication: The claimant can seek adjudication if there's a dispute.
• Court: The claimant may go to court if adjudication is not chosen or to enforce payment.
• Recovery: The claimant can pursue payment from the respondent's principal in certain cases.