Major change to payment claims under the CCA—1 December 2015

While most of the prominent changes to the CCA come into effect in 2016 and 2017, a significant change affecting entitlement to payment comes into effect on 1 December 2015. With the removal of the distinction between a residential and a commercial construction contract, all construction contracts entered into from 1 December 2015 (or renewed on or after that date) are treated, essentially, the same. And, importantly, all payment claims issued under those new (or renewed) contracts must now be accompanied by a written outline of the process for responding to the payment claim and an explanation of the consequences of not responding and of not paying the claimed amount or the scheduled amount in full (whichever is applicable).

This written outline must be in Form 1 as prescribed by the newly-released Construction Contracts Amendment Regulations 2015.

What this means is that, unless you attach Form 1 to each and every payment claim that you issue, it will not be a CCA compliant payment claim. Click here for a copy of the prescribed CCA Form 1 that must accompany (i.e. be attached to or form part of) each and every payment claim that you issue on new or renewed contracts from 1 December 2015 onwards.

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