Contractors covered by the Code for the Tendering and Performance of Building Work 2016 (Building Code 2016) are reminded that from 1 September 2018, the ABCC will treat failure to report disputed or delayed payments as a breach of the Building Code 2016.

The obligation was announced in July as part of a new ABCC security of payment campaign, which is aimed at increasing awareness of payment rights and obligations. It requires code covered entities to report a disputed or delayed payment as soon as practicable after the date on which the payment falls due.

The ABCC have produced a Q&A factsheet on Security of Payment, which outlines that this obligation may arise where:

• An amount is certified by a Principal (or Superintendent) under a contract and not paid within the contractual timeframe.
• An amount is specified in a payment schedule/notice of dispute issued under the security of payment laws and not paid by the date prescribed by those laws.
• Other than in Western Australia and the Northern Territory, no payment schedule/notice of dispute is issued in response to a valid payment claim and the full amount of the payment claim is not paid by the date prescribed by the security of payment laws.
• An adjudicator makes a determination under the relevant state and territory security of payment legislation and the adjudicated amount is not paid by the date prescribed by the security of payment laws.
• A third party such as a court, arbitrator, or expert issues a binding determination and the amount determined is not paid in accordance with the determination.

Further information on reporting obligations, including a new reporting form  is available from the ABCC website.