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If your construction contract is covered by the Building and Construction Industry (Security of Payment) Act 2021 (WA) (SOP Act), you have a statutory right to make progress payment claims. The first step in the prescribed claim and adjudication process is to make a compliant payment claim.
You can claim a progress payment:
In addition, you must make your payment claim within:
Payment claims can be made for single and once-off payments, progressive and partial payments, and final payments. The value of a payment claim must be based on either:
If the payment relates to goods or services, they must become the property of the respondent upon payment.
A payment claim must be in writing and must set out:
The claim does not need to be signed.
If you are carrying out residential building work for a homeowner worth over $500,000, you will also need to provide them with a copy of the Homeowner’s Notice, which is included in the SOP Regulations.
You do not need to provide the Homeowner’s Notice if:
If they don’t intend to pay your claim in full, the respondent should issue you with a ‘payment schedule’ within 15 business days of the date of the claim. The payment schedule must set out the amount they intend to pay, plus all reasons why the amount is wholly or partly disputed.
The respondent is still required to pay you the undisputed amount within the applicable timeframe. However, if you disagree with the payment schedule, you can apply for adjudication.
There are specific due dates for payment of claims made under the SOP Act. If your claim isn’t paid on time you have several options, including:
To suspend the works you must:
You will be required to start work again within 3 business days of receiving payment.