Innovative protocols and technologies as a means of complying with the Building and Construction Industry Security of Payments Act 1999 (NSW) Australia

Abstract

The Building and Construction Industry Security of Payments Act 1999—updated 27 November 2003, New South Wales, Australia provides a statutory framework which governs compulsory progress payments for those who undertake works or provide goods or services as part of a construction contract. Respondents to the process are being disadvantaged as a result of complying with the Act. Claimants are purported to be taking months to prepare detailed and comprehensive payment claims, prior to serving them on the respondents, who, under the Act, have limited time to compile a detailed payment schedule in response. This research investigates the use of two recent innovations that could assist in the administration of the process. The first is the Society of Construction Law's Delay and Disruption Protocol's model clauses, and the second is the use of web‐based technology as a project administrative tool. A literature search was carried out, together with semi‐structured qualitative interviews, to determine opinions of their use and effectiveness. Results indicate a recognition and appreciation of the likely benefits of transparency, efficiency and improved cost effectiveness of the project administrative processes, possibly resulting in potential savings and improved cost recovery opportunities, with the potential to reduce and/or avoid disputes.

Keywords:

• Payment
• contract administration
• documentation
• claims