NSW SOP Act Key Features
About Us
Services Directory
Consultant Profile
Security of Payment Act
SOP Act Key Features
SOP Flowchart
Business Day Calendars
Typical Clients
Contact Us
Adjudication Time Line Checklists
New Court Decisions
Some Key Features of the SOP Act NSW

Following is an outline description of some key features of the Act followed by a reference to the part of the Act that contains the full description of each feature.

Note: Readers should not rely upon the abbreviated details listed below but should refer to the relevant section of the Act for a more complete description of each feature.

  • The object of the Act is set out in S3
  • The Act defines the term "construction work" for which the payment claims may be submitted under the Act in S5
  • The Act also applies to "related goods and services" as defined in S6
  • The Act does not apply to a construction contract for the carrying out of residential building work. See S7(b)
  • Rights to Progress Payments and a description of a ‘reference’ date is set out in S8
  • The due date for payment of a Payment Claim is set out in S11(1A) for a head contractor and S11 (1B) for a subcontractor. • Note: Payment times are different for a head contractor and a subcontractor see S11 (1a) & S11 (1b)
  • A "Pay when Paid" provision of a Contract does not apply to Payment Claims made under the Act. Any such provision in a Contract offends the Act. See S12
  • The provisions of the Act have effect despite any provisions to the contrary in any Contract. That is, parties to a Contract cannot contract out of the provisions of the Act. See S34
  • To be valid, Payment Claims must meet the requirements of Division 1,S13 of the Act. Payment Schedules, must meet the requirements of S14 of the Act.
  • The Act prescribes time limits relative to:
    • The submission of a Payment Claim. Refer S13
    • The provision of a Payment Schedule. Refer S14
    • The submission of an Adjudication Application. Refer S17
    • The submission of an Adjudication Response. Refer S20
      Note: Refer to the flowcharts, elsewhere on this website, and express provisions of the Act for further details.
  • Time limits prescribed by the Act are expressed as business days, a definition of which is given in S4 of the Act.
  • The Claimant may serve a Payment Withholding Request  on the Principal at any time after lodging an Adjudication Application. see S26A) and S26 (B) for details of the process under the Act.
  • The serving of Notices under the Act is set out in S31
  • Subject to certain pre-conditions and required notice to the Respondent a Claimant may suspend work under a contract see Division 3, S7 for details


Specialist Consultants to the Building and Engineering Construction Industries
About Us|Services Directory|Consultant Profile|Security of Payment Act|SOP Act Flowchart|SOP Act Key Features
|Business Day Calendars|Typical Clients|Links|Contact Us

HCL Associates