New Security of Payment provisions finally to come into effect – but next stage of Project Bank Accounts pushed back
The subjective intent of the sender is likely to be irrelevant to determining whether something is or is not a Payment Claim. You will not be able to say,
“I didn’t mean for it to be a Payment Claim”. If it matches the statutory criteria, then it will be a Payment Claim, with the relevant consequences
flowing from it (including the potential to unwittingly “burn” reference dates).
If you do not:
- Pay such a Payment Claim in full; or
- Respond with a fulsome Payment Schedule (noting that all reasons for non-payment must now be included; regardless of the value of the Payment Claim),
then you could be faced with an adjudication application/or Court proceedings in which you have almost no viable arguments.
Generally, however this new provision is likely to significantly reduce and often eliminate the need for people from whom retention monies or securities are being retained to spend tens of thousands of dollars applying to the Courts for an injunction to enforce their right to the return of retention monies or release of security.