New South Wales Consolidated Acts
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BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 - SECT 13
(1) A person referred to in section 8 who is or who claims to be entitled to a
progress payment (the
"claimant" ) may serve a payment claim on the person who, under the
construction contract concerned, is or may be liable to make the payment.
(1A) A payment claim may be served on and from the last day of the named month
in which the construction work was first carried out (or the
related goods and services were first supplied) under the contract and on and
from the last day of each subsequent named month.
(1B) However, if the
construction contract concerned makes provision for an earlier date for the
serving of a payment claim in any particular named month, the claim may be
served on and from that date instead of on and from the last day of that
(1C) In the case of a construction contract that has been terminated,
a payment claim may be served on and from the date of termination.
(a) must identify the construction work (or
related goods and services) to which the progress payment relates, and
must indicate the amount of the progress payment that the claimant claims to
be due (the
"claimed amount" ), and
(c) must state that it is made under this Act.
The claimed amount may include any amount--
(a) that the respondent is liable
to pay the claimant under section 27(2A), or
(b) that is held under the
construction contract by the respondent and that the claimant claims is due
(4) A payment claim may be served only within--
(a) the period
determined by or in accordance with the terms of the construction contract, or
(b) the period of 12 months after the construction work to which the claim
relates was last carried out (or the related goods and services to which the
claim relates were last supplied), whichever is the later.
(5) Except as
otherwise provided for in the construction contract, a claimant may only serve
one payment claim in any particular named month for construction work carried
out or undertaken to be carried out (or for related goods and services
supplied or undertaken to be supplied) in that month.
(6) Subsection (5) does
not prevent the claimant from--
(a) serving a single payment claim in respect
of more than one progress payment, or
(b) including in a payment claim an
amount that has been the subject of a previous claim, or
(c) serving a
payment claim in a particular named month for construction work carried out or
undertaken to be carried out (or for related goods and services supplied or
undertaken to be supplied) in a previous named month.
(7) A head contractor
must not serve a payment claim on the principal unless the claim is
accompanied by a supporting statement that indicates that it relates to that
: Maximum penalty--1,000 penalty units in the case of a
corporation or 200 penalty units in the case of an individual.
head contractor must not serve a payment claim on the principal accompanied by
a supporting statement knowing that the statement is false or misleading in a
material particular in the particular circumstances.
: Maximum penalty--1,000
penalty units in the case of a corporation or 200 penalty units or 3 months
imprisonment (or both) in the case of an individual.
(9) In this section--
"supporting statement" means a statement that is in the form approved by the
Secretary and (without limitation) that includes a declaration to the effect
that all subcontractors, if any, have been paid all amounts that have become
due and payable in relation to the construction work concerned.
Note : An
offence against subsection (7) or (8) committed by a corporation is an
executive liability offence attracting executive liability for a director or
other person involved in the management of the corporation--see section 34D.
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