The Legal Practitioners Liability Committee has published a warning on its website for legal practitioners who may fail to follow the very strict requirements set out in the Building and Construction Industry Security of Payment Act 2002 (Vic).

The main message of the article is this:

In one claim the practitioner failed to properly advise his owner client to issue a payment schedule within 10 business days of receipt of a contractor’s payment claim. The practitioner was experienced in building and construction area but he usually acted in disputes between builders and individuals building their own homes. He didn’t appreciate that as the client was in the business of building residences and the contract was in the course or furtherance of that business the payment regime applied. See s.15 Building and Construction Industry Security of Payment Act 2002 (Vic).

Another trap for lawyers inexperienced in this area of practice is the 10 year limitation period to bring a building claim pursuant to s.134 of the Building Act 1993 (Vic). For more information about some applicable limitation periods refer to the LPLC practice risk guide Know your limits.

The Act is designed to offer a "pay now, argue later" regime. If the requirements of the Act are not strictly followed, your client may be required to pay without the benefit of an opportunity to argue later.

The article can be read in full here