16.8  Building and Construction Industry Security of Payment Act 2002 (Vic)

Guidance Note - Please note that where the Project Owner is using the Agreement for a Project in a jurisdiction other than Victoria, the Project Owner will need to review and amend this provision to reflect the relevant jurisdiction's requirements (including applicable legislation).

(a)  The NOPs must:

(1)  promptly give the Project Owner a copy of any notice that a NOP receives from a Subcontractor; and

(2)  ensure that each Subcontractor promptly gives the Project Owner and the NOPs a copy of any notice that the Subcontractor receives from another party, 

under any section of the SoP Act.

(b)  If the Project Owner becomes aware that the Subcontractor is entitled to suspend any works or services (which forms part of the Works) under any section of the SoP Act, the Project Owner may (at its absolute discretion) pay the Subcontractor such money as is or may be owing to the Subcontractor in respect of works or services forming part of the Works. Any amount paid by the Project Owner will be a Reimbursable Cost and the Project Owner is not liable to pay the NOP for the work performed by the Subcontractor the subject of the payment.

(c)  For the purposes of this clause 16.8, a reference to:

(1)  a Subcontractor includes any person engaged by a NOP, its subcontractors or any other person to carry out works or services which form part of the Works; and

(2)  works or services refers to all or any part of the Works a NOP is or may be required to execute or provide under this Agreement and includes equipment, services (including design work), Materials and Construction Plant.