Some Key Features of the SOP Act NSW

Following is an outline description of some key features of the Act followed by a reference to the part of the Act that contains the full description of each feature.

Note: Readers should not rely upon the abbreviated details listed below but should refer to the relevant section of the Act for a more complete description of each feature.

• The object of the Act is set out in S3
• The Act defines the term "construction work" for which the payment claims may be submitted under the Act in S5
• The Act also applies to "related goods and services" as defined in S6
• The Act does not apply to a construction contract for the carrying out of residential building work. See S7(b)
• Rights to Progress Payments and a description of a ‘reference’ date is set out in S8
• The due date for payment of a Payment Claim is set out in S11(1A) for a head contractor and S11 (1B) for a subcontractor. • Note: Payment times are different for a head contractor and a subcontractor see S11 (1a) & S11 (1b)
• A "Pay when Paid" provision of a Contract does not apply to Payment Claims made under the Act. Any such provision in a Contract offends the Act. See S12
• The provisions of the Act have effect despite any provisions to the contrary in any Contract. That is, parties to a Contract cannot contract out of the provisions of the Act. See S34
• To be valid, Payment Claims must meet the requirements of Division 1,S13 of the Act. Payment Schedules, must meet the requirements of S14 of the Act.
• The Act prescribes time limits relative to:
  • The submission of a Payment Claim. Refer S13
  • The provision of a Payment Schedule. Refer S14
  • The submission of an Adjudication Application. Refer S17
  • The submission of an Adjudication Response. Refer S20
    Note: Refer to the flowcharts, elsewhere on this website, and express provisions of the Act for further details.
• Time limits prescribed by the Act are expressed as business days, a definition of which is given in S4 of the Act.
• The Claimant may serve a Payment Withholding Request  on the Principal at any time after lodging an Adjudication Application. see S26A) and S26 (B) for details of the process under the Act.
• The serving of Notices under the Act is set out in S31
• Subject to certain pre-conditions and required notice to the Respondent a Claimant may suspend work under a contract see Division 3, S7 for details