The Building and Construction Industry (Security of Payment) Act 2021 (the Act) applies to certain types of contracts entered into between builders/contractors and homeowners for home building work. This ensures those working in the residential segment have access to the payment protections under the Act in the appropriate circumstances.

If you are a homeowner, it is important to understand when the Act may apply to your contract and what happens if your builder/contractor gives you a payment claim under the Act.

Alternatively, if you are a builder or contractor undertaking a residential project, or a subcontractor working for a builder on a residential project, you need to also be aware of when the Act applies to your contract.

Building and Energy has prepared the guide below to help you understand when the Act applies to a residential project and what you need to do. This guide should be read in conjunction with the other information about the Act available elsewhere on our website.

Building and Energy cannot assist you with preparing documents required under the Act. If you are unsure how to proceed under the Act, refer to the information available on the Building and Energy’s website below, or seek professional advice.

Homeowner and home builder overview fact sheet

Homeowners notice

Guidance on the process

The web section below provides information to assist with using the security of payment legislation and contains videos, fact sheets, user guides and templates.

View the 'Using the security of payment laws' section.