16 Sep 2009
Security of Payment scheme coming to Tasmania
The Tasmanian bill closely reflect the New South Wales legislation.
The Tasmanian Government has announced the release of the Building and Construction Industry Security of Payment Bill 2009.
The proposed security of payment scheme will apply to a broad range of construction work. It will allow a contractor to refer disputes over progress claims to a rapid adjudication process. If the adjudicator determines any amount to be owed, it will be an enforceable debt. However, the outcome of the adjudication is provisional, in the sense that it will not prejudice any subsequent arbitration or court proceedings.
Similar security of payment schemes are already in force in New South Wales, Victoria, Queensland, Western Australia and the Northern Territory. In March 2009 a Building and Construction Industry Security of Payment Bill was also read for the second time for the South Australian Government. Both the Tasmanian and South Australian bills closely reflect the New South Wales legislation.