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From 1 March 2021: SOPA Changes to Residential Building Works in NSW


From 1 March 2021the owner occupier exemption under the Building and Construction Industry Security of Payment Act 1999 (NSW) (‘SOPA’) will be removed. 

Who does this affect: residential builders and suppliers of goods or services to owner occupiers in NSW who entered into contracts on or after 1 March 2021.

What does this mean: residential builders and trades have a right to make payment claims under the SOPA from owners. 

Serving a Payment Claim: under the SOPA, the right to claim payment flows from the service of a valid Payment Claim. Builders and contractors should ensure they comply with the formal requirements when issuing a Payment Claim (such as the requirement to include a supporting statement)Pecuniary penalties may apply if Payment Claims are improperly issued. 

Receiving a Payment Claim: If you are served with a payment claim, you must act quickly and respond within the prescribed period. 

If you have questions about your obligations and liabilities under the SOPA (NSW), you may contact our Member Services IR and Legal Team on (02) 6175 5900.