The realities of enforcement under SOPA

There is often a misconception that referencing SOPA in your payment claims automatically affords you protection under SOPA.In reality, there are many practical challenges to using the SOPA regime. The following factors can greatly increase your costs of using SOPA: THE IMPORTANCE OF BEING SOPA COMPLIANT From signing a contract, to administering the contract through […]

How to recover your Debts

With the End of Financial Year 2021 fast approaching, we discuss how to practically recover your overdue debts in the construction industry. These debt collection methods include: Letter of Demand A letter of demand is a formal demand for payment and generally sets out the consequences of non-payment, which is usually legal action. A letter […]

Excluded amounts and payment claims under the Security of Payment Act (VIC)

CASE STUDY – Yuanda Vic Pty Ltd v Façade Designs International Pty Ltd [2021] VSCA 41 Facts of the Case Facade Designs agreed to install façade elements manufactured and supplied by Yuanda as part of the construction of commercial and residential towers at 447 Collins Street known as ‘the Arch on Collins’ for the price of […]

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 […]

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 […]