In a previous edition we highlighted the proposed changes to building legislation in NSW, which included restrictions on rights under the Building and Construction Industry Security of Payment Act 1999 (SOP Act) where there are non-compliances with ss 4 and 92 of the Home Building Act 1989 (HBA).
The Better Regulation Legislation Amendment (Miscellaneous) Bill 2024 (BRLA Bill) has since been passed by both Houses without amendment, on 14 August 2024.
The BRLA Bill amends the SOP Act to restrict the right to make a progress claim (and therefore a payment claim) where the works under the construction contract are carried out by unlicensed contractors, or without a policy of insurance under the Home Building Compensation Fund.
The Bill legislates around decisions such as Sunshine East
Pty Ltd v CBEM Holdings Pty Ltd [2023] NSWSC 744, where the
Supreme Court of NSW held that a payment claim for residential
building work which has been completed to an acceptable standard,
was valid even if a contractor is unlicensed and uninsured under the HBA.
The Bill awaits assent and the relevant aspects will come into force on the date of assent.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.