Introduction

The Building and Construction Industry Security of Payment Act 2002 improves payment practices in the Victorian Building and Construction Industry.

The Act helps to ensure that any person who carries out construction work or supplies related goods and services under a construction contract gets paid. The Act is designed to increase cash flow and provide a fast, cheap, non-legalistic way of resolving payment for work done or materials or services supplied.  

• The Act covers both verbal and written construction agreements
• It provides a statutory right to be paid for work done
• It establishes default payment terms where contract is silent
• It bans "pay when paid" and "paid if paid'' clauses
• It establishes a process for the fast recovery of payments
• It provides for the quick adjudication of payment disputes at a low cost to the parties.