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From 1 March 2021, residential builders will be able to use the
Security of Payment regime to more easily resolve disputes and
recover progress payments from owner occupier homeowners.
Residential home building work carried out by a home builder for
an owner occupier homeowner has always been exempt from the
Security of Payment laws in NSW.
This has meant that the residential home builder carrying out
construction work on an owner occupier s new or existing
home:
cannot utilise the quick and efficient Security of Payment
adjudication process to resolve a dispute with the homeowner;
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY
COURTS - COSTS - OFFERS OF COMPROMISE, PAYMENTS INTO COURT AND
SETTLEMENTS - OFFER OF COMPROMISE OR OFFER TO SETTLE OR CONSENT TO
JUDGMENT PURSUANT TO RULES - GENERALLY - where there was a claim
and counterclaim - where the appellant made an all-up
offer to settle all claims in the proceeding which was
expressed to be under ch 9 pt 5 of the Uniform Civil Procedure
Rules 1999 (
the Rules) - where the offer did not
distinguish between the claim and counterclaim - where the trial
judge held that rr 360 and 361 of the Rules did not apply to the
The new
Building and Construction Industry Security of Payment Regulation 2020 (
New Regulation) commenced on 1 September 2020 (except for Schedule 2 which will commence on 1 March 2021).
The New Regulation repeals the
Building and Construction Industry Security of Payment Regulation 2008 and is designed to better facilitate and support the administrative functions of the
Building and Construction Industry Security of Payment Act 1999 (
the SOP Act).
Exempt residential construction contracts
Owner occupier construction contracts are contracts where the homeowners intend to the live in the premises. Previously, a residential builder could not use the mechanisms of the SOP Act to recover outstanding progress claims from homeowners.
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