Welcome back to our series on the Security of Payment Act (SOPA). In our first instalment, we introduced the core purpose of SOPA: to ensure cash flows through the construction industry by establishing a fast-tracked system for payment. Now, we move from the "why" to the "how." The entire SOPA process is triggered by a single, critical document: the Payment Claim . This is not just another invoice. It is a formal request for payment that carries significant legal weight under the Act. Getting this document right is the essential first step to unlocking your statutory right to payment and accessing the rapid adjudication process if a dispute arises. What is a Payment Claim? A payment claim is a statutory demand for a progress payment for construction work carried out or for related goods and services supplied. It serves as the foundation for every subsequent step under SOPA. If the payment claim is invalid, you will not be able to rely on the Act to recover payment. While it can look like a regular invoice, a valid payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW) must meet three mandatory requirements: It must identify the construction work (or related goods and services) to which the progress payment relates. It must indicate the amount of the progress payment that the claimant claims to be due. It must state that it is a payment claim made under the Building and Construction Industry Security of Payment Act 1999. This last point is absolutely crucial and is often where claimants make a mistake. The recipient must be put on notice that this is not just an ordinary invoice, but a formal claim under the Act that carries specific legal obligations. This is often referred to as the "magic words." A simple statement such as, “This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 (NSW),” prominently displayed on the document, is sufficient. The Crucial Concept of the "Reference Date" You cannot simply issue a payment claim whenever you feel like it. A claim can only be made on and from a specific "reference date." The reference date is a point in time that triggers your right to make a claim. So, how is the reference date determined? If your contract specifies dates for making progress claims: These dates are your reference dates. For example, if the contract states you can claim on the 25th day of each month, then the 25th of each month is your reference date. If your contract does not specify a date: The reference date will be the last day of the month in which you first carried out the work and the last day of each subsequent month. A payment claim cannot be served before the reference date has arisen. Understanding your reference dates is fundamental, as issuing a claim prematurely can render it invalid. A contract will typically only allow for one payment claim per reference date. Timing and Service of a Payment Claim Once a reference date has passed, you must serve your payment claim within the period specified in the contract or within 12 months after the construction work to which the claim relates was last carried out, whichever is the later. Serving the claim correctly is just as important as drafting it correctly. The claim must be served on the person or company who, under the contract, is liable to make the payment. This can be done by: Delivering it in person. Lodging it during normal office hours at their ordinary place of business. Sending it by post to their ordinary place of business. Sending it via fax or email to a number or address specified in the contract for service of notices. It is always best practice to serve the claim in a way that provides you with proof of delivery, such as by email with a read receipt or by registered post. Why Getting the Payment Claim Right Matters A valid payment claim puts the recipient on the clock. It triggers a strict, non-negotiable timeframe for them to either pay the claimed amount in full or to respond with a "Payment Schedule" detailing why they are paying less. If your payment claim is invalid—perhaps because it lacks the "magic words" or was served before a reference date—the recipient has no obligation to respond under the Act. This means you lose your right to pursue the rapid adjudication process and are pushed back into the slow and expensive traditional routes of recovering payment. The payment claim is your key to the entire SOPA regime. Taking the time to ensure it is drafted and served correctly is the most important investment you can make in protecting your cash flow. Coming Up in Part 3: The other side of the coin. What happens once a payment claim is received? We will break down the requirements for a Payment Schedule and the serious consequences of failing to provide one in time.

"Grey divorce," the phenomenon of couples divorcing later in life, presents unique legal and financial considerations. As family lawyers, we recognise that these divorces often involve complex asset division, including retirement savings, pensions, and inheritances. Additionally, spousal maintenance may be a significant factor, as older individuals may have limited earning capacity or health concerns. One of the key challenges in grey divorce is the emotional toll it can take on individuals who have been married for many years. The decision to divorce later in life can be accompanied by feelings of loss, regret, and uncertainty about the future. As family lawyers, we provide not only legal guidance but also emotional support to clients navigating this difficult transition. From a legal perspective, grey divorce requires careful consideration of the parties' financial circumstances and future needs. This may involve engaging financial experts to value assets, assess future income streams, and develop strategies for dividing property and ensuring both parties' financial security. Additionally, health concerns and estate planning considerations may need to be addressed. This could involve updating wills, powers of attorney, and advance care directives to reflect the changed circumstances. Grey divorce can be a complex and emotionally challenging process. By seeking legal advice and support, individuals can navigate the legal and financial complexities and achieve a fair and equitable outcome that allows them to move forward with dignity and security.