About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

2 Int'l J.L. Built Env't 7 (2010)

handle is hein.journals/jppel2 and id is 1 raw text is: The current issue and full text archive of this journal is available at www.emeraldinsight.com/1756-1450.htm Follow-up empirical study of the performance of the New South Wales construction industry security of payment legislation 7 Michael Charles Brand and Thomas Uher The University of New South Wales, Sydney, Australia Abstract Purpose - The purpose of this paper is to report on findings of follow-up research into the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW), which was undertaken in 2007. The research aims to re-assess the performance of the Act in the light of strong demand for adjudication of construction payment claims in New South Wales. Design/methodology/approach - A cross-sectional survey of member firms of The Master Plumbers & Mechanical Contractors Association of NSW and the National Electrical & Communications Association (NSW Chapter) was undertaken using a comprehensive multiple-choice questionnaire administered by post. The questionnaire comprised 23 questions, whereby all but one question was of a multiple-choice type. In answering the questions, the sampled claimants were required to draw on their understanding of the Act, and their experience with the adjudication process. Results were compared with a pilot study undertaken by the authors in 2004. Findings - The results indicate that the object of the Act is generally being achieved. Whilst the culture of making late payments remains well entrenched in the construction industry, there appears to be a modest downward trend in the frequency of late payments since the 2004 study. It is now reasonably certain that the act of endorsing payment claims encourages communication between the parties, thus providing an opportunity for early dispute avoidance or resolution. However, the level of knowledge of the Act amongst subcontracting organisations overall has not improved since 2004 study, and may have even declined. It is clear that contractors and subcontractors are not taking full advantage of the Act. Originality/value - The paper provides evidence of the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW) between 2004 and 2007. The research compares key performance indicators for the purpose of determining whether or not the Act produces the expected result of increasing security of payment, and whether the results are consistent with the reason for the Act. It also provides important insights into the operation of similar legislation in other jurisdictions. Keywords Payments, Laws and legislation, Construction industry, Australia Paper type Research paper 1. Introduction In 2004, the authors attempted to assess the performance of the Building and Construction Industry Security of Payment Act (1999) NSW (the Act) through a survey administered to trade contractors (hereafter referred to as the 2004 study). The data for the 2004 study were sought from a random sample of 400 members of International NSW construction industry Journal of Law in the Built Environment Vol. 2 No. 1, 2010 The authors wish to gratefully acknowledge The Master Plumbers & Mechanical Contractors pp. 7-25 Association of NSW and the National Electrical & Communications Association (NSW Chapter) © Emerald Group Publishing Limited for their support of this research. DOI 10.1108/17561451011036496

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most