In force2020 Revised Edition

Contents

Building and Construction Industry Security of Payment Act 2004 · 2020 Revised Edition · Part 2 · Rights to Progress Payments

6. Amount of progress payment

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The amount of a progress payment to which a person is entitled under a contract is —

(a)

the amount calculated in accordance with the terms of the contract; or

(b)

if the contract does not contain such provision, the amount calculated on the basis of the value of the construction work carried out, or of the goods or services supplied, by the person under the contract.

Terms defined in this Act

construction work
Defined · s 3
“construction work” means —(a)the construction, alteration, repair, restoration, maintenance, extension, demolition or dismantling of buildings or structures (whether permanent or not) that form, or are to form, part of the land;(b)the construction, alteration, repair, restoration, maintenance, extension, demolition or dismantling of any works that form, or are to form, part of the land, including walls, roadworks, powerlines, telecommunication apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for the purpose of land drainage, coast protection or defence;(c)the installation in any building, structure or works of fittings that form, or are to form, part of the land, including systems of heating, lighting, air conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, and security or communications systems;(d)any operation which forms an integral part of, is preparatory to, or is for rendering complete, works of the kind mentioned in paragraph (a), (b) or (c), including —(i)land reclamation;(ii)site clearance, earth moving, excavation, tunnelling and boring;(iii)the laying of foundations;(iv)the erection, maintenance or dismantling of scaffolding;(v)the prefabrication of components to form part of any building, structure or works, whether carried out at or on the construction site or elsewhere; and(vi)site restoration, landscaping and the provision of roadways and other access works;(e)the external or internal cleaning of buildings, structures or works, so far as it is carried out in the course of their construction, alteration, repair, restoration, maintenance or extension; or(f)the painting or decorating of the external or internal surfaces of any building, structure or works;
Open s 3
contract
Defined · s 2
“contract” means a construction contract or a supply contract, and includes a construction contract or a supply contract that has been terminated;
Open s 2
goods
Defined · s 3
“goods” means —(a)materials or components to form part of any building, structure or works arising from construction work; or(b)plant or materials (whether supplied by sale, hire or otherwise) for use in connection with the carrying out of construction work;
Open s 3
progress payment
Defined · s 2
“progress payment” means a payment to which a person is entitled for the carrying out of construction work, or the supply of goods or services, under a contract, and includes —(a)a single or one-off payment (including a final payment); or(b)a payment that is based on an event or a date (including a final payment);
Open s 2
services
Defined · s 3
“services” means —(a)the conduct of feasibility studies, planning services, the submission of applications or other documents to any relevant authority, site supervision services, professional engineering services, or architectural, design, surveying or quantity surveying services, in relation to construction work;(b)project management services in relation to construction work;(c)building, engineering, exterior or interior decoration or landscape advisory services in relation to construction work; or(d)the provision of labour to carry out construction work.
Open s 3