June 2021 Update
I’m Ping Gangur, the principal lawyer at Level Playing Field Lawyers is the end of the financial year and a good time to talk about debt recovery. In this month’s newsletter, we’ll review some debt recovery methods that are suitable for contractors and subcontractors in the construction industry. We describe some of the methods and […]
General construction clauses you should really know about
Contracts in the construction industry are very onerous and generally seek to push obligations ‘down the chain’ from developers to builders to subcontractors. No-one really likes contracts (except maybe us lawyers), but it is a vital risk allocation document.But before you sign the dotted line, here are some general clauses that you should really know […]
Claiming retention is not a claim for Construction Works
What is retention? Retention is a fixed percentage of the total payment due for a contract, withheld for a period as security for performance of your contractual obligations). It is rightfully a subbies money but claiming retention using the Security of Payments legislation (SOPA) will depend on the form of the payment claim. A claim […]
The Dangers of Bank Guarantees and Claims under Security of Payments Act (SOPA)
What are Excluded Amounts? These are amounts that cannot be considered in an application under SOPA.Liquidated damages are an ‘excluded amount.’ Facts of the case: Vcon v Oliver Hume [2020] VSC 767 Oliver Hume had sought to deduct liquidated damages from payment claims issued by Vcon. Vcon applied for adjudication under SOPA and succeeded in […]
Significant Changes To Unfair Contract Terms Regime
Background On 6 November 2020, Federal and State Ministers agreed to extend the unfair contract terms (UCT) law provided by the Australian Consumer Law. What contracts are currently covered?Standard form contracts entered into on or after 12 November 2016, where: What are the changes? Details on the timing of implementation has not been released. What […]
Basics In Understanding Legal Contracts And Tenders
Do you know the full implications of the risks and costs to your business if you don’t have a good understanding of the contracts you are executing? Contract Risks What other costs and risks does your business face through poorly negotiated contract clauses, or poor contract administration? Level Playing Field Lawyers partner with Australian Steel […]
Court back SOPA ideals – Pay Now, Argue Later
There are two ways to enforce payments under the Security of payment legislation (SOPA): Adjudication (private Adjudicator); orSummary judgment (Court process). When you receive a payment schedule, Adjudication is your only option.When you do not receive a payment schedule, you can choose adjudication or summary judgment. Theoretically, summary judgment should be like kicking a goal […]
Security of Payments Series
The 6 Steps to Making a Successful Payment Claim In the Construction Industry “Cashflow is King“. When it comes to business success it is so important to keep money flowing into your business. The Security of Payments Act (SOPA) is a fast track debt recovery method specific to the Construction Industry. SOPA helps contractors, subcontractors, […]
The Importance of Serving Your Payment Claims Correctly
The recent case of Spirito Development Pty Ltd v Sinjen Group Pty Ltd, shows the importance of serving payment claims clearly and correctly under the Security of Payments Act. In April 2019, Sinjen subcontracted Spirito for Plastering services under a Master Sub-Contract. The works progressed with Spirito issuing payment claims regularly from May to November […]
Security of Payments Spotlight
How many contracts exist for works you are conducting on site? A valid payment claim under the Security of Payments Act (SOPA) has the following limitations: Sounds simple enough, you just issue one (1) payment claim per contract. The recent case of Rapid Concrete Developments Pty Ltd v Lorem Constructions Pty Ltd (2020) VCC 858 […]