Member Only | 2023.08.27 Security of Payment Act online seminar

How to Quickly Resolve Economic Disputes between Builders and Subcontractors/Suppliers in Construction Projects?

In the construction industry, builders often encounter economic disputes with subcontractors/suppliers during the course of a project, such as:

Failure to reach an agreement on payment amounts.

Unreasonable claims received by the contractor.

Non-payment by the client despite invoices being issued by the subcontractor/supplier.

Ignoring responses received from the other party, leading to potential consequences.

These disputes often result in delayed payments, putting financial strain on subcontractors/suppliers or causing project delays, adversely affecting the project timeline.    Dealing with these challenges is inevitable in construction projects, and opting for legal resolution through traditional avenues like hiring lawyers and going through the VCAT process can be costly and time-consuming.

So, how can both parties utilize the most economical and expedient legal process to safeguard their interests?

Fortunately, in Australia, there is a pathway available to quickly resolve economic disputes over project payments – the Building and Construction Industry Security of Payment Act 2002, commonly known as the SOP Act.    This law aims to protect the interests of all parties involved in construction disputes, covering various types of construction contracts.    The process is relatively short, and the enforceability of judgments is robust.    If dissatisfied with the outcome, what steps should be taken next?

The Australian Building and Propetry Association (ABPA) has invited experts from Level Playing Field Lawyers, a member firm, to explain the relevant regulations and how to apply them to different scenarios encountered in construction projects.

ABPA members can view the event recording.