For owner occupier residential contracts signed after 1 March 2021 builders will be able to claim for periodic claims and not just staged claims. This comes with the recent amendments to the Building and Construction Security of Payments Act.
Previously, builders were restricted to staged claims only for contracts with residential owner occupiers. Periodic claims, such as for the value of work done that were claimed weekly, fortnightly or monthly as agreed, were only permissible for residential building work contracts with owners’ corporations, developers or investors.
From 1 March 2021, a residential builder can now:
- Make periodic claims for BC4 or Small Residential Renovations & Additions, with contract signed after 1 March 2021.
- The stage claim section can be ruled through with a note referring to a special condition which can set out the basis of periodic claims.
The next version of these contracts will contain the option of periodic claims or staged claims. Amendments will also be made to the SW contract in the ABIC suite.
For further assistance in implementing this new payment schedule, please contact the Master Builders Legal Department on 02 8586 3517.