Building and Construction Industry Security of Payment Act 2002

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Building and Construction Industry Security of Payment Act 2002

An Act of the Parliament of Victoria, introduced to allow for the rapid determination of progress claims under building contracts or sub-contracts and contracts for the supply of goods or services in the building industry. This process was designed to ensure cash flow to businesses in the building industry, without parties get tied up in lengthy and expensive litigation or arbitration.

Adjudication is much quicker than litigation in a Court (an adjudicator’s determination must be made within 10 days of receipt of application) and less expensive. An adjudicator’s determination is binding on the parties and can be recovered as a debt owing in a Court.

The Victorian Building Commission has authorised Building Adjudication Victoriato nominate adjudictors.

The Building and Construction Industry Security of Payment Act 2002 is currently being reviewed by the State Government for reforms which may widen the scope of the Act within the building industry in Victoria.