Overview of the Building and Construction Industry Security of Payment Act 1999
In present time, Australia is facing two major challenges or issues, deficiency of institutional investment and fact that shape to rent assets have not matured in liquid market place. These assets cannot be traded as commercial office building or other assets. These problems cannot be overcome. The Building and Construction Industry Security of Payment Act 1999 is applicable to agreements regarding creation whether oral contract or written contract, or partly written or partly oral. It is also applicable if agreement is stated to be administered by law of jurisdiction other than NSW. However, Building and Construction Industry Security of Payment Act 1999 is not applicable on the contract forming law agreement, the gurantee contract, or an insurance contract. The property council of New South Wales supports the build-to-rent housing as process of giving citizens of New South Wales with good and more accommodation options. Build-to-rent is a way, which offers more accommodation options. It also offers professional building management and the preservation services.
In this essay, work of the Building and Construction Industry Security of Payment Act 1999 and property council of NSW is discussed and examined.
The Building and Construction Industry Security of Payment Act 1999 enables payments for construction work. The main aim of the Building and Construction Industry Security of Payment Act 1999 is to make sure that an individual who commences to conduct the work of construction as per the construction related contract, is permitted to take, and is capable to improve the payment regarding conducting work and delivering of goods and amenities. For achieving this aim, the Building and Construction Industry Security of Payment Act 1999 has announced new permissible privileges for the applicants like right to progress payment, previlage to awareness on delay payments, right to lien, and the right to interrupt work. The Building and Construction Industry Security of Payment Act 1999 (NSW) also delivers invalid payment when remunerated clauses in agreements associated to construction (Dai, et. al, 2016).
The Building and Construction Industry Security of Payment Act 1999 (New South Wales) also addresses exclusive form of rapid settlement to deal with quarrels overdue progress payment, where a self-regulating arbitrator creates an interim purpose as to sum of progress payment to be made to applicant by member. Only an applicant may take initiate the settlement procedure. However, both the parties can make the application to the adjudicator. The Authorised Nominating Authority can appoint an arbitrator. The Building and Construction Industry Security of Payment Act 1999 (NSW) changed that this makes able sub-contractor to create entitlements for the progress payment. The Building and Construction Industry Security of Payment Act 1999 (New South Wales) also makes able the sub-contractor to attain quickly, cheaply and without the order of court what a supplement order as per Contractors Debts Act 1997 (New South Wales) attained before (Davenport, 2010). The Building and Construction Industry Security of Payment Act 1999 (NSW) provides to party of the construction contract, the legal right to progress payments for the work or for supply of related goods and the amenities. It also provides a method to impose the statutory right to the progress payment. It render that where an applicant selects to recover the due portion of demanded amount as liability from court, a person is not authorised to take a cross claim against the applicant or arise resistance regarding the issues arising under construction contract. The property council of New South Wales forms a maintainable and affordable housing market in New South Wales, which renders various range of the accommodation options. In the case of Walter Construction Group Pty Ltd v CPL (Surrey Hills) Pty Ltd [2003] NSWSC 266, it was held by the court that main object of this act is to provide the powers and rights to the progress payment for the people who conduct the work related to construction. The same purpose is defined in the case Beckhaus v Brewarrina Council [2002] NSWSC 960.
Exclusive form of rapid settlement to deal with quarrels
In Australia, the community of sub-contractors were seeking for the protection in respect of the payment of the sub-contractors. To protect the payment of the sub-contractors, many legislatures, rules, and regulations have been introduced in various states of the Australia such as Queensland Sub-Contractors Charges Act (1974) and the employee’s lien legislations passed in South Australia (Uher and Davenport, 2009). New South Wales announced first inclusive scheme in 1999. This inclusive scheme aimed directly at the secured progress payment for the contractors, sub-contractors and the dealers in construction industry and building industry (Coggins, Teng and Rameezdeen, 2016). The features of UK Housing Grants and the Construction and Regeneration Act, 1996 have been accepted by New South Wales Building and Construction Industry Security of Payment Act 1999 (the NSW Act) (Fu, et. al, 2016).
During the operation of the NSW Act, the state government have made investigation for protection of the payment regulation. The NSW Act is directed towards improving the two main issues in building industry and the construction industry. The first issue arises, when the developer withholds the money from the contractor without any explanation based on groundless claim or unfair set-off. The developer having important capital or undercapitalised developer can make effective use of the builders as not paid bankers by denying, or otherwise failing to make settlement of their accounts as per the situations (Martinsuo and Ahola, 2010). The second issue is related to the delay payment. This problem arises when the contractor suppresses the money from the sub-contractor or delays the payment for 90 days to 120 days. This difference of time between the payment to contractor and payment made to sub-contractor, the amount of the sub-contractors becomes free capital for the supplier. On 30 October, 2013, the New South Wales legislative assembly enacted the many proposed amendments to the Building and Construction Industry Security of Payment Act 1999 (NSW). These amendments or revisions will change the construction legal land in New South Wales for some time to come (Clarke and Wardle, 2017).
The Building and Construction Industry Security of Payment Act 1999 (NSW) was enacted to attempt the counter of protection of the issue of progressive payment in NSW. The Building and Construction Industry Security of Payment Act 1999 (New South Wales) was introduced to make sure that any individual who carries out the supply of possessions and services or any construction work as per the contract related to construction, is permitted to take, and is capable to take back the progress payment of related work and providing possessions and amenities. The Building and Construction Industry Security of Payment Act 1999 (NSW) claims inspires Communication between many parties, which gives a chance for the early clashes prevention or the determination. The influence of present security of payment regulation or law is to prevail the predetermined relationship of members in construction procedure (Carter, Peden and Tolhurst, 2007). In the case of Hickory developments Pty ltd v Schiavello (Vic) Pty ltd & Anor [2009] VSC 156 at [2], it was held by the court that common objective of protection of payment regulation and object to be served need no introduction.
Protection of sub-contractor payment
The New South Wales Act introduced the rapid procedure of adjudication, that is speedy and relatively inexpensive mechanism for the solution of the arguments related to payment on the temporary basis. The settlement process or the arbitration process and timeframes are firm and administered by the NSW Act. The purpose and determination of the arbitrator or judge is obligatory on the parties till the date when matter is totally solved, maybe by the court or by any private agreement (Glendon, Clarke and McKenna, 2016) . In New South Wales, if any party who is required to pay, but cannot make payment of the decided amount by the applicable period, then the purpose of determination of the adjudicator is able to get registration as the judgement in the court of capable authority by the procedure agreed in the New South Wales Act. When it registered, the purpose of the adjudicator is enforceable in the similar manner as an order of court (Brand and Uher, 2010).
If at the last level, the respondent makes application in the court to have decision away, the respondent is not permitted to make a cross-claim in contradiction of the demanding party, or rise any protection in respect of the issues raising as per the contract related to the construction, or encounter the purpose of an adjudicator except on the grounds permitted by the court (Harris and McCaffer, 2001). It is much needed by respondent to make payment in court as the safekeeping due part of arbitrated amount awaiting result of the proceedings of court (Berdal, 2017).
There are many amendments have been made in the in the Building and Construction Industry Security of Payment Act 1999 regarding to sub-contractors. The amendments have been made the Building and Construction Industry Security of Payment Act 1999, to provide rights to subcontractor in respect of the owner of the property. The Amendment Act is just to create it complex than for subcontractors to attain rapid sum. These amendments have been introduced to have some good image on decreasing economic effect of the indebtedness on the subcontractors in New South Wales construction industry. The amendment Act 2013 can be of interest in global authority where constitutional or legal adjudication for the construction industry or the building industry has been announced or is being considered or planned (Hughes, Champion and Murdoch, 2015). To resolve the difficulties of the subcontractors and to provide the rights to subcontractors related to the owner of property, the New South Wales Act is amended by 2013 Amendment Act. These amendments renders the fair terms of the payment for the subcontractors. It would hold main contractors for explanation of the statement in respect of the payment to the subcontractors. These amendments provide the easier and simpler way to the subcontractors for the better and simple utilisation of the Building and Construction Industry Security of Payment Act 1999 (Law, 2017). The section 4 of New South Wales Act is altered by addition of descriptions of release housing construction contract, main contractor and the sub-contractor (Glendon, Clarke, and McKenna, 2016). The section 11 of New South Wales Act is altered by including extended period for the payment after receiving the claim of payment. The section 13 of the NSW Act is also altered to eliminate some contracts (Ashworth and Perera, 2015).
Amendments to the Building and Construction Industry Security of Payment Act 1999
Conclusion:
As per the above analysis, it can be concluded that the Building and Construction Industry Security of Payment Act 1999 creates a complete obligations and privileges to the progress payments. This helps in securing and claiming the progress payments in building industry and construction industry. It signifies an important step forward for Victoria. In past times, there was no legislation in that area. The Building and Construction Industry Security of Payment Act 1999 (NSW) Act considerably glasses New South Wales Act. Many difficulties with legislature are carried by as consequences of this. The constant nature of the structures will support all the parties involved to include the necessities into their work practices, exercise, and see their new privileges and new accountabilities.
In respect of the latest solid requirement for settlement of payment entitlements in NSW, the Building and Construction Industry Security of Payment Act 1999 (New South Wales) has debatably prospered in attaining the sustenance of the important part of the construction industry or the building industry to which it implies. As per this, it will see that the aim of the Building and Construction Industry Security of Payment Act 1999 (New South Wales) is usually being attained. As per this, it is clear that the obligation in the Act of sanctioning payment claims inspires interaction between the parties. On the other hand, the consequences show a remarkable adverse alteration since the 2004 study in applicants’ view of how authorization of payment entitlements influences working association between the parties.
References:
Ashworth, A., and Perera, S. (2015) Cost studies of buildings. Oxford: Routledge.
Berdal, M. (2017) Building peace after war. Oxford: Routledge.
Brand, M.C., and Uher, T. E. (2010) Follow-up empirical study of the performance of the New South Wales construction industry security of payment legislation‘. International Journal of Law in the Built Environment, 2(1), pp. 7-25
Carter, J., Peden, E., and Tolhurst, G. (2007) Contract Law in Australia. Sydney: Butterworths.
Clarke, T. H., and Wardle, G. (2017) What Is a Building Owner to Do: Appealing Building Permit Decisions under Current Idaho Law. Advocate, 60, p.23.
Coggins, J., Teng, B., and Rameezdeen, R. (2016) Construction insolvency in Australia: reining in the beast. Construction Economics and Building, 16(3), p.38.
Dai, L., Yang, N., Zhang, L., Yang, Q., and Law, S.S. (2016) Monitoring crowd load effect on typical ancient Tibetan building. Structural Control and Health Monitoring, 23(7), pp. 998-1014.
Davenport, P. (2010) Adjudication in the Building Industry. Sydney: The Federation Press.
Fu, K.W., Wong, P.W., Law, Y.W., and Yip, P.S. (2016) Building a typology of young people’s conventional and online political participation: A randomized mobile phone survey in Hong Kong, China. Journal of Information Technology & Politics, 13(2), pp. 126-141.
Glendon, A.I., Clarke, S., and McKenna, E. (2016) Human safety and risk management. Florida: CRC Press.
Harris, F., and McCaffer, R. (2001) ‘Modern Construction Management’. Melbourne: Blackwell-Carlton.
Hughes, W., Champion, R., and Murdoch, J. (2015) Construction contracts: law and management. New York: Routledge.
Law, I. (2017) Building the Anti-racist University, action and new agendas. Race Ethnicity and Education, 20(3), pp. 332-343.
Martinsuo, M., and Ahola, T. (2010) Supplier integration in complex delivery projects: Comparison between different buyer–supplier relationships‘. International Journal of Project Management, 28, pp. 107-116.
Uher, T. E., and Davenport, P. (2009) Fundamentals of building contract management. Sydney: UNSW Press.
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