Security of payment warning
December 03, 2019
Builders who engage contractors should be familiar with the security of payment legislation. That legislation allows a contractor to serve a payment claim on the builder to receive prompt payment of a progress claim.
The builder has 10 business days to provide their response - a payment schedule - to avoid being liable for the full amount claimed by the contractor. A Saturday, Sunday and a public holiday is not a business day. A weekday that is not a public holiday is a business day even during the Christmas and New Year holidays. This holiday season the following days are business days: up to Wednesday 24 December 2019, Friday 27 December 2019, Monday 30 December 2019, Tuesday 31 December 2019 and Thursday 2 January 2020 onwards.
It is not unknown for a contractor to serve a payment claim on a builder just before or after Christmas in the hope that the claim will not be noticed in time. To protect yourself from this risk is it important that you have your emails, post and faxes checked during the holiday season. This will ensure that you are able to respond in time to any payment claims or other critical correspondence.
For further information, contact a HIA workplace adviser on 1300 650 620.