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👉 What is Security of Payment Act NSW (SOPA) & How to Make a Payment Claim 💸 💻 The Building and Construction Industry Security of Payment Act 1999, also known as Security of Payment Act (SOPA) is a NSW legislation intended to provide contractors in the construction industry with healthy cash flow and also protect against the risk of insolvency.    It does this by providing unique rights and protections for contractors and putting in place a legal process for recovering progress payments.    Once a payment claim is made, the principal or head contractor has 10 business days to respond with a payment schedule. Failure to do so can result in liability for the entire claim, recoverable as a debt in court.   Over the Christmas period, CARAS recommends that project team members responsible for payment claims monitor their emails or delegate this responsibility if they are going on leave, due to the time-sensitive nature of responding to the process.   CARAS has put together this carousel to help you navigate the process of making or receiving a payment claim - swipe to learn more 👇   To keep up to date on industry news and insights, follow our page CARAS   If you need advice on the Security of Payments Act, we can help.   👥 Contact John Kevin Graham 𝟗𝟐𝟗𝟗 𝟐𝟑𝟔𝟑 visit our website 𝐜𝐚𝐫𝐚𝐬.𝐜𝐨𝐦.𝐚𝐮 for more info #ProjectManagement #ConstructionIndustry #NSWLegislation #CommercialAdvisory #BuildingIndustry #ConstructionNSW #CARAS

Did you know there's a law that can help you get paid faster in construction? It's provided for under the Construction Industry Payment and Adjudication Act 2012 (CIPAA), and it sets strict deadlines for resolving payment disputes. This means less waiting and more working. Wondering how fast? Click on the link below to see CIPAA's timeline. It could be the key to keeping your projects - and cash - flowing smoothly. Read more here: https://lnkd.in/edksMkRj #CIPAA #FastPayments #ConstructionBusiness #JoshuaAaronKeet

Many EoT claims fail due to preventable errors in documentation, lack of evidence, or failing to follow the proper process. When these mistakes happen, projects are delayed, costs rise, and relationships strain. What if there was a straightforward way to avoid these pitfalls? Probably your claims would be approved faster, without the back-and-forth. Know the top reasons for EoT claim rejections—and address them in advance. A little preparation goes a long way! #fidic #contracts #constructionclaims #disputeresolution #claimsmanagement #constructionlaw #projectfinance #claims #contractmanagement #construction #epc #construction #infrastructure #contracts

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Adjudication processes under FIDIC contracts, the Scheme for Construction Contracts, and the Housing Grants, Construction and Regeneration Act (HGCRA) . Part 2 : Adjudication under HGCRA 1. Framework: The Housing Grants, Construction and Regeneration Act 1996 (amended 2011) mandates adjudication as a right in all construction contracts in the UK. 2. Appointment: An adjudicator is appointed on an ad-hoc basis for each dispute. Parties can agree on an adjudicator or refer to a nominating body. 3. Role: Adjudication under HGCRA is intended for quick resolution of disputes to keep projects moving. 4. Timeframe: Similar to the Scheme, the adjudicator must reach a decision within 28 days, with possible extensions if agreed by parties. 5. Binding Nature: Decisions are provisionally binding, enforceable until final settlement by arbitration, litigation, or agreement. 6. Legislative Basis: HGCRA provides a statutory right to adjudication, ensuring all construction contracts include or imply a compliant adjudication process. Key Differences 1. Origin and Basis: - FIDIC: Contractual, specific to FIDIC contracts. - Scheme: Statutory, for contracts without compliant adjudication provisions. - HGCRA: Statutory, mandating adjudication rights in all UK construction contracts. 2. Appointment and Structure: - FIDIC: Often involves a standing DAB appointed at the project's start. - Scheme: Ad-hoc adjudicator for each dispute. - HGCRA: Ad-hoc adjudicator appointed as disputes arise, with statutory backing. 3. Timeframe: - FIDIC: Generally 84 days for decisions. - Scheme and HGCRA: 28 days for decisions, extendable with consent. 4. Binding Nature: All frameworks require interim compliance with adjudicator decisions, pending final resolution. 5. Scope and Application: - FIDIC: Specific to projects using FIDIC contracts, often international. - Scheme: A fallback for UK contracts without adequate adjudication clauses. - HGCRA: Ensures all UK construction contracts have a right to adjudication. #Construction #Law #adjudication #arbitration #dispute #project #management #contract #administration #fidic #Scheme #housing #grants #act #HGCRA

Contractor insolvency continues to remain one of the biggest challenges facing the construction sector. With industries such as accommodation and food services experiencing an increase, many are searching for further guidance on how to manage the situation. Miller's Construction team has once again collaborated with HLME Ltd and Charles Russell Speechlys to release their second insolvency-related paper. Written from the perspectives of a development and construction project manager, lawyer and insurance expert, this document provides guidance and a checklist of key actions to take when managing a contractor insolvency during works. Click here to read the full article ➡ https://bit.ly/4gcj7lA #construction #insurance #contractorinsolvency

Stay Informed, Stay Compliant! Discover the latest changes to the Building and Construction Industry (Security of Payment) Act 2009 (SOPA) in the Australian Capital Territory (ACT). 🏗️ In our latest newsletter, we delve into the implications of the recently passed Building and Construction Legislation Amendment Act 2023. From the removal of 'reference dates' to the introduction of maximum payment terms, we break down the key amendments and their impact on the industry. 💼 Stay ahead of the curve and ensure compliance with the revamped SOPA regulations. Join us as we navigate through the legal intricacies and practical implications of these significant changes. ⚖️ #SOPAAmendments #ConstructionIndustry #Compliance #LegalInsights

Owners: Don't miss the upcoming COAA (Construction Owners Association of America) webinar!   In today’s tightening financial markets, safeguarding your projects from payment issues is more critical than ever. Join industry experts as they discuss the necessity of customizing payment clauses in construction contracts to protect against unnecessary payment disputes and other financial risks.   Join us for “Customize Your Payment Clauses…or They’ll Come Back to Haunt You” on September 11 from 1-2 PM (ET), featuring John Wolf, Peritia Partners LLC; Jose Pienknagura, Gallagher; Christopher LeMieux, Riess LeMieux LLC; and Lauren Catoe, AECOM.   Key Takeaways:  1. Understanding Payment Clauses: Strategies to mitigate the impact of bankruptcies and insolvencies. 2. Handling Large Scope Changes: Managing cash flow impact from significant scope changes. 3. Navigating Defaults: Handling lender or surety takeovers due to defaults. 4. Essential Checklist: Key payment terms and clauses to watch for.   By attending, you will gain unparalleled knowledge from top industry experts, help protect your financial interests with actionable strategies, and walk away with a comprehensive checklist to customize payment clauses effectively.   Register here: https://lnkd.in/gvqGSZcQ and fortify your contracts against payment issues!   #COAA #Webinar #ConstructionLaw #PaymentProtection #FinancialSecurity

Well worth a read if you want to begin to understand the “ceaseless changes” to construction legislation.

Understanding the key differences Between #LiquidatedDamages vs #ProlongationCosts #Liquidated_Damages * Compensates the client for anticipated losses due to delays. * Amount is pre-agreed and stated in the contract. * Imposed on the party responsible for the delay (typically by Client to the contractor). #Prolongation_Costs *Compensates the contractor for actual additional costs due to delays. *Based on actual costs incurred For the contractor. *Claimed by the contractor when delays are due to reasons beyond their control like delays caused by the client or other unforeseen circumstances In summary liquidated damages protect the client from losses due to delays, while prolongation costs protect the contractor from financial burdens caused by project extensions that are not their fault.