Amendments and commencement
The Building and Construction Industry Security of Payment Act 2002 (SOP Act) has been amended by the Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Act 2025.
The amendments take effect from 15 April 2026.
Changes to the SOP scheme
The changes to the security of payment scheme relating to the claims and adjudication processes, include:
- a statutory entitlement to claim for the release of a performance security
- removal of the dual concepts of ‘claimable variations’ and ‘excluded amounts
- reference dates are no longer required and have been replaced with a monthly entitlement to make a payment claim, with a limited exception in December
- an extension of the time to make a payment claim from 3 months to 6 months
- payment and release terms are capped at 20 business days
- a new process for claims for the release of performance securities
- new notice-based time bar restrictions
- changes to the adjudication response process precluding ‘new reasons’ being included in an adjudication response
- additional time for a respondent to serve a ‘second chance’ payment schedule
- extension of the adjudication determination timeframe
- the definition of ‘business day’ has been changed to exclude 22 December to 10 January
- modernising the way documents can be served
- new procedures for one party’s failure to pay a portion of an adjudicator’s fees
- repeal of review adjudication applications.
See more information on the Changes to the SOP scheme.
Changes affecting construction contracts
Changes to the SOP Act will impact all construction contracts, including contracts entered into before the amendments came into operation on 15 April 2026. These include:
- restrictions on minimum payment and release terms
- further limitations on pay when paid provisions
- new unfair notice-based time bar provisions that mean a provision will have no effect if it is determined to be ‘unfair’ by an adjudicator, a court, an arbitrator or an appointed expert
- restrictions on when a payment claim can be served
- restrictions on when a person can have recourse to a performance security.
See more information on the Changes affecting construction contacts.