Security of payment

Code covered entities must:

• comply with SOP laws
• report payment disputes or delays – subcontractors can report too
• make payments in a timely manner
• resolve disputes reasonably
• document and follow a dispute settlement process
• not coerce or pressure subcontractors to exercise or not exercise SOP rights 
• comply with adjudication.

The ABCC may be able to seek rectification in relation to code covered entities.

Security of payment refers to a building contractor’s right to receive payments that are due as outlined in their contract. Code covered entities must:

• comply with the security of payment legislation in the state or territory where the work is being done
• report payment disputes or delays – subcontractors can report too
• make payments in a timely manner
• resolve disputes reasonably
• document and follow a disputes settlement process
• not coerce or pressure subcontractors regarding exercising or not exercising SOP rights 
• comply with adjudication.

The ABCC may be able to seek rectification in relation to code covered entities.