Oral Presentation IPWEA International Public Works Conference 2025

Emerging Issues for Public Sector Project Managers in respect of Security of Payments Legislation

The Security of Payments (SOP) legislation in Australia plays a critical role in ensuring the financial stability and fairness of the construction industry. Originating to combat the issue of delayed and non-payments, the legislation has evolved to address various emerging issues that impact stakeholders, including public sector authorities.

Public authorities delivering construction works and services must comply with the legislation and failure to do so can expose an authority to significant financial and other risk impacts.

However, there is also a general community expectation that public sector authorities are model litigants.  Accordingly, failure to manage SOP issues can also result in serious reputational and other issues for an authority.

This paper will;

• Explain the operation of the Security of Payment legislation
• Discuss emerging issues regarding the operation of the framework
• Consider recent cases and adjudications relevant to the public works sector
• Discuss best practice contract administration for public sector agencies undertaking construction work enabling them to manage the complexities and emerging issues associated with this legislation

The emerging issues and recent cases highlight the need for ongoing vigilance and adaptation by public sector authorities in their contract administration practices. By adopting best practices and staying informed about legislative developments, public sector authorities can effectively manage their construction projects and uphold the principles of fairness and financial stability.