South Australia regulation

Building and Construction Industry Security of Payment Regulations 2011

In ForceSA

Jurisdiction

South Australia

Collection

regulation

Plain English Summary

3/10 complexity

These regulations set practical rules that operate under the Building and Construction Industry Security of Payment Act: they identify which financial institutions and construction‑related services are in scope, require minimum training and qualifications for adjudicators, and exempt certain large Crown contracts from specified adjudication provisions (see s4–s7). They change who can bring or decide payment disputes, who bears compliance costs (training, documentary proof) and remove some adjudication pathways for Crown contracts over $4,000,000, shifting decision authority and costs between private parties and the Crown.

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Current sections

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Building and Construction Industry Security of Payment Regulations 2011

South Australia Building and Construction Industry Security of Payment Regulations 2011 under the Building and Construction Industry Security of Payment Act 2009

Contents 1 Short title 3 Interpretation 4 Recognised financial institutions 5 Related goods and services 6 Eligibility criteria for adjudicators 7 Exemption from adjudication provisions Legislative history

1—Short title These regulations may be cited as the Building and Construction Industry Security of Payment Regulations 2011. 3—Interpretation In these regulations— Act means the Building and Construction Industry Security of Payment Act 2009. 4—Recognised financial institutions Each person or body that is a body regulated by the Australian Prudential Regulation Authority under the Australian Prudential Regulation Authority Act 1998 of the Commonwealth is prescribed for the purposes of the definition of recognised financial institution in section 4 of the Act. 5—Related goods and services (1) Subject to subregulation (2), services of the following kind are prescribed for the purposes of section 6(1) of the Act: (a) project management services in relation to construction work; (b) contract management services in relation to construction work; (c) consultancy services in relation to construction work. (2) Subregulation (1) does not apply to any services provided under a prescribed contract (within the meaning of regulation 7). 6—Eligibility criteria for adjudicators Pursuant to section 18(1)(b) of the Act, a natural person is eligible to be an adjudicator in relation to a construction contract if— (a) the person has successfully completed a formal course of training of at least 2 days duration in adjudication of payment disputes in the building and construction industry that required the person to pass a written examination; and (b) the person— (i) holds a degree, diploma or other qualification in— (A) architecture; or (B) building surveying; or (C) building; or (D) construction; or (E) law; or (F) project management; or (G) quantity surveying, from a university; or (ii) is, or is eligible to be, a member (other than a student member) of any 1 or more of the following professional bodies: (A) The Royal Australian Institute of Architects; (B) Engineers Australia; (C) Australian Institute of Building Surveyors; (D) The Institute of Arbitrators and Mediators Australia; (E) The Australian Institute of Building; (F) Australian Institute of Project Management; or (iii) holds registration as a building work supervisor under the Building Work Contractors Act 1995 that authorises the person to supervise construction work of a kind carried out, or to be carried out, under the construction contract. 7—Exemption from adjudication provisions (1) Pursuant to section 35(2) of the Act, a party to a prescribed contract is exempt from the operation of the following provisions of the Act in respect of that contract: (a) section 14(4); (b) section 15; (c) section 16(2)(a)(ii) and (4); (d) Part 3 Divisions 2 and 3; (e) section 30; (f) section 31. (2) In this regulation— Crown includes a Minister, agency or instrumentality of the Crown; prescribed contract means a contract (whether entered into before or after the commencement of this regulation) entered into between the Crown and another person under which the total amount payable to the other person will exceed $4 000 000 (excluding GST) over the term of the contract; term of the contract does not include any extension of the contract. Legislative history Notes • For further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au. Principal regulations and variations New entries appear in bold. Year No Reference Commencement 2011 251 Gazette 1.12.2011 p4785 10.12.2011: r 2 2025 17 Gazette 1.5.2025 p834 1.5.2025: r 2 Provisions varied New entries appear in bold. Entries that relate to provisions that have been deleted appear in italics. Provision How varied Commencement r 2 omitted under Legislation Revision and Publication Act 2002 1.5.2025 r 5

r 5(1) r 5 amended and redesignated as r 5(1) by 17/2025 r 3(1), (2) 1.5.2025 r 5(2) inserted by 17/2025 r 3(2) 1.5.2025 r 7 inserted by 17/2025 r 4 1.5.2025

Source text

Sourced from South Australian Legislation (legislation.sa.gov.au), CC BY 4.0.

1 Building and Construction Industry Security of Payment Regulations 2011

South Australia Building and Construction Industry Security of Payment Regulations 2011 under the Building and Construction Industry Security of Payment Act 2009

1—Short title These regulations may be cited as the Building and Construction Industry Security of Payment Regulations 2011. 3—Interpretation In these regulations— Act means the Building and Construction Industry Security of Payment Act 2009. 4—Recognised financial institutions Each person or body that is a body regulated by the Australian Prudential Regulation Authority under the Australian Prudential Regulation Authority Act 1998 of the Commonwealth is prescribed for the purposes of the definition of recognised financial institution in section 4 of the Act. 5—Related goods and services (1) Subject to subregulation (2), services of the following kind are prescribed for the purposes of section 6(1) of the Act: (a) project management services in relation to construction work; (b) contract management services in relation to construction work; (c) consultancy services in relation to construction work. (2) Subregulation (1) does not apply to any services provided under a prescribed contract (within the meaning of regulation 7). 6—Eligibility criteria for adjudicators Pursuant to section 18(1)(b) of the Act, a natural person is eligible to be an adjudicator in relation to a construction contract if— (a) the person has successfully completed a formal course of training of at least 2 days duration in adjudication of payment disputes in the building and construction industry that required the person to pass a written examination; and (b) the person— (i) holds a degree, diploma or other qualification in— (A) architecture; or (B) building surveying; or (C) building; or (D) construction; or (E) law; or (F) project management; or (G) quantity surveying, from a university; or (ii) is, or is eligible to be, a member (other than a student member) of any 1 or more of the following professional bodies: (A) The Royal Australian Institute of Architects; (B) Engineers Australia; (C) Australian Institute of Building Surveyors; (D) The Institute of Arbitrators and Mediators Australia; (E) The Australian Institute of Building; (F) Australian Institute of Project Management; or (iii) holds registration as a building work supervisor under the Building Work Contractors Act 1995 that authorises the person to supervise construction work of a kind carried out, or to be carried out, under the construction contract. 7—Exemption from adjudication provisions (1) Pursuant to section 35(2) of the Act, a party to a prescribed contract is exempt from the operation of the following provisions of the Act in respect of that contract: (a) section 14(4); (b) section 15; (c) section 16(2)(a)(ii) and (4); (d) Part 3 Divisions 2 and 3; (e) section 30; (f) section 31. (2) In this regulation— Crown includes a Minister, agency or instrumentality of the Crown; prescribed contract means a contract (whether entered into before or after the commencement of this regulation) entered into between the Crown and another person under which the total amount payable to the other person will exceed $4 000 000 (excluding GST) over the term of the contract; term of the contract does not include any extension of the contract. Legislative history Notes • For further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or . Principal regulations and variations New entries appear in bold. Year No Reference Commencement 2011 251 Gazette 1.12.2011 p4785 10.12.2011: r 2 2025 17 Gazette 1.5.2025 p834 1.5.2025: r 2 Provisions varied New entries appear in bold. Entries that relate to provisions that have been deleted appear in italics. Provision How varied Commencement r 2 omitted under Legislation Revision and Publication Act 2002 1.5.2025 r 5