Security of Payment Reform in Western Australia: What to Expect and What You Will Need to Do Differently

Following years of review and industry discussion, the Parliament of Western Australia has passed the Building and Construction Industry (Security of Payment) Act 2021 (WA) (SOP Act). The SOP Act marks a drastic departure from the Construction Contracts Act 2004 (WA) and will see Western Australia largely adopt the East Coast Model of security of payment laws. It is imperative that parties who carry out construction work understand changes relating to payment claims, the introduction of payment schedules, an overhaul of the adjudication process and new requirements to hold retention on trust.