Normans Alert

Building and Constructions Industry Security of Payment

Further to our briefly article on 28 November 2011 –'Security of Payment – Here it Comes', we advise that the two paged Building and Construction Industry Security of Payment Regulations 2011 were published in the South Australian Government Gazette on 1 December 2011.  The Regulations:

• prescribe that a body regulated by the Australian Prudential Regulation Authority is a recognised financial institution for the purposes of the Act;
• prescribe certain ‘related goods and services’ for the purposes of section 6(1) of the Act; and
• set the eligibility criteria for adjudicators pursuant to section 18(1)(b) of the Act.

There are a number of other sections of the Act for which matters may be prescribed and which are not the subject of any regulations as yet.  In particular:

• under section 5(1) of the Act the definition of ‘construction work’ may be expanded by regulation;
• under section 5(2) of the Act certain matters may be excluded from the definition of ‘construction work’;
• under section 6(2) of the Act certain matters may be excluded from the definition of ‘related goods and services’;
• under section 7(5) of the Act a construction contract or class of construction contracts may be excluded from the operation of the Act;
• under section 30 of the Act an hourly rate for adjudicators may be prescribed to apply if there is not an agreement between the parties as to the amount to be paid to an adjudicator for their services; and
• under section 35 of the Act regulations may exempt a specified person or class of persons, or a specified matter or class of matters, from the operation of the Act.

The Regulations will come into operation on the same date as the Act, on 10 December 2011.  Make sure you are ready!

For further information on any of the material contained in this article please contact Mark Henderson on 8210 1220 or mhenderson@normans.com.au.

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