Meet the Co-chairs - TAGLAW
Authors: Robert Riddell, Partner and Brianna Smith, Lawyer
Poor payment practices in the construction industry have faced increasing scrutiny by legislators, culminating in a series of amendments (and proposed amendments) to the security of payment regime.
Partner, Robert Riddell, and lawyer, Brianna Smith, step you through the introduction of retention trusts and the telegraphed statutory trust accounts, explaining how they work and what they mean for you.
Head contracts for construction work in New South Wales entered into on or after 1 May 2015, with a contract sum of $20 million or more are subject to the retention trusts regulation located in Part 2 of the Building and Construction Industry Security of Payment Regulation 2008.
Author: Robert Riddell
Over 1½ years since John Murray was appointed by the Commonwealth Department of Employment to undertake a review of the security of payment laws across Australia, the New South Wales Government is pressing ahead, alone, with changes to its east coast model for security of payment.
It is well understood that the security of payment regime is by far the fastest, cheapest and most efficient method for contractors to secure payment of their progress claims. Whether the respondent is disputing the claim, or just tardy in its payment behaviour, the 'pay now argue later' legislation, while technical, is typically an effective express lane to securing payment.
However, like any 20 year old highway, there are cracks starting to appear. One major problem identified in our article: ‘Security of Payment and Factoring. Not so Fast!' is where a ‘debt’ claimed by a payment claim has been separated, by assignment, from the claimant.
Authors: Mark Kenney, Partner and Karl Higgins, Solicitor
‘Unknown Unknowns’ are not simply a Donald Rumsfeld double negative; but can now also be considered a genuine area of claims in relation to construction contracts.
We are all familiar with the concept of ‘Known Unknowns’, the classic being latent conditions. These are known areas of risk where the specific risk itself is unknown, but the possibility has been addressed by implementing processes under the contract for managing the response and making claims where the risk materialises.
Come 1 July 2018, Queensland will see the repeal of the Building and Construction Industry Payments Act 2004 (Qld) and the Subcontractors' Charges Act 1974 (Qld). Instead, Queensland will operate under a single consolidated piece of security of payment legislation called the Building Industry Fairness (Security of Payment) Act (BIF).
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