Security of Payment in the ACT: A Powerful Tool for the building and construction industry

The Master Builder’s ACT has recently received an increased number of enquiries regarding debt collection or disputes surrounding the payment of invoices.

One of the unique mechanisms available to the building and construction industry is the Security of Payment framework.

What is the Security of Payment framework?

The Building and Construction Industry (Security of Payment) Act 2009 (ACT) (SOPA) provides a statutory process that enables contractors, subcontractors, suppliers, and service providers in the building and construction industry to recover progress payments quickly and cost-effectively.

Importantly, where a valid payment claim is made under the Act, payment is generally required within 15 business days of the claim being received, regardless of any longer payment terms contained in the contract.

Who can make a claim?

Subject to certain exceptions, you may be eligible to make a claim under SOPA if:

• You or your business have carried out building or construction work, or supplied related goods and services;
• The work was performed for a person or entity other than the owner of a residential property that is their principal place of residence; and
• The work or supply of goods and services was undertaken within the ACT.

Why consider the SOPA process?

For eligible claims, the Security of Payment framework can provide a faster and more cost-effective pathway to recovering outstanding payments than traditional legal action.

Master Builders ACT encourages members to consider whether the Security of Payment process may be available to them when dealing with overdue invoices or payment disputes.

Our Workplace Relations Team can provide general guidance and resources to assist members in understanding and navigating the process.

If you have any questions about the SOPA process or debt collection in general, please contact the Workplace Relations Team:

📞 (02) 6175 5900
📧 workplace@mba.org.au