Construction bulletin: A roundup of recent global industry developments

Welcome to the March 2025 edition of our bulletin. In this edition we look at security of payments regimes in the UK, Australia, Ireland, Singapore, Malaysia, New Zealand and Canada. These regimes aim to address issues such as payment delays and disputes, which can significantly impact cash flow for contractors and subcontractors. As you will see, some regimes are more effective than others, but each has had a material effect on the way progress payments disputes are resolved.

The UK was the first to introduce statutory rights to interim payments and rapid adjudication processes via the Housing Grants, Construction and Regeneration Act 1996. Australia followed with state-based legislation, starting with New South Wales' Building and Construction Industry Security of Payment Act 1999.

New Zealand's Construction Contracts Act 2002 and Singapore's Building and Construction Industry Security of Payment Act 2004 were next to be implemented. Malaysia's Construction Industry Payment and Adjudication Act followed in 2012. The Republic of Ireland introduced the Construction Contracts Act in 2013. In 2024, Hong Kong passed its own regime which is due to take effect in August 2025.

Canada has also seen the implementation of security of payments legislation at the provincial level, with Ontario's Construction Act being a notable example. In Australia, the state of Victoria is embarking on further changes to address persistent concerns about insolvencies in the sector. Thomas Armstrong and Jason Choi run through the main proposed changes to the existing regime.

While SOPA legislation and its impact on the construction sector varies across jurisdictions, it is unquestionably an important tool in supporting the financial health of construction companies. We hope that you find these SOPA reviews helpful. If you would like to understand how you might be able to utilise the legislation where you are located, please do get in touch with our team.