Victoria’s Security of Payment Reforms Are Now in Force - Is Your Business Ready?

The Victorian Security of Payment regime has undergone its most significant reform in nearly two decades.

With the new Victorian Security of Payment laws in effect as of 15 April 2026, the construction industry is now operating under one of the most significant reforms to payment legislation in years.

These changes directly affect how payment claims are prepared, assessed, and responded to across all levels of project delivery – creating new compliance obligations, commercial risks, and operational pressures for principals, contractors, subcontractors, and project teams alike.

For many businesses, the challenge is no longer simply understanding the reforms at a legal level, but ensuring their teams, systems, and project processes are equipped to implement them in practice.

Access our Victorian Security of Payment Guide today

When you don’t get paid for works, you need to act fast to protect your interests and recover the money owed to you. Otherwise you are at risk of missing crucial deadlines and losing your best chance to recover payments.

FAQs

Do the new Victoria Security of Payment Laws apply to existing contracts?

Yes, the reforms apply not only to new contracts, but also to many existing construction contracts. This means your current projects may already be affected, even if the contract was signed before the changes commenced.

What has changed with adjudication under the new regime?

Adjudication is now more accessible and can cover a broader range of disputes. This means disputes may arise more quickly and frequently, and parties need to be prepared to respond within tight timeframes.

How do the changes affect subcontractors?

Subcontractors generally benefit from stronger payment rights and fewer contractual barriers to making claims. However, they still need to ensure their claims are properly prepared and compliant.

How do the changes affect contractors and principals?

Contractors and principals face increased risk if their payment processes are non-compliant. In particular, greater care is required in issuing payment schedules, managing claims, and drafting contract provisions.

Do I need to update my contracts?

In most cases, yes.

Many standard contract provisions may no longer operate as intended under the new regime. A review can help ensure your contracts remain enforceable and aligned with the reforms.

What should I be doing right now to prepare?

At a minimum, you should:

Review your current contracts
Update internal payment claim and response processes
Train your team on the new requirements
Assess your exposure on current projects

Get your team ready with our Victorian Security of Payment Readiness & Implementation Workshop and stay ahead of the changes.

Since 2020, Batch Mewing has delivered tailored industry training designed to help construction teams navigate legislative change in a practical, project-focused way.

Our Victorian Security of Payment Readiness and Implementation Workshop is designed to translate the recent reforms into clear, actionable guidance, tailored to your business’ specific projects, risks, and operational structure.

Key topics covered include:

The key changes introduced under the new SOPA regime;
Update approaches to preparing and responding to payment claims and payment schedules;
Areas where contractors may face increased risk or exposure; and
Practical examples based on common project scenarios.

Get in touch today

Stephanie Duffy

Principal
Construction & Major Projects

Stephanie is a construction contracts specialist with experience gained in-house and in private practice. She has advised in relation to a wide range of projects, including commercial, industrial and residential developments, civil and infrastructure, and engineering and mining projects.

EMAIL

stephanie.duffy@batchmewing.com.au

PHONE

+61 499 105 320

Joshua Saunders

Senior Associate
Construction & Major Projects

Josh primarily acts in construction litigation and disputes across Australia including in QLD, NSW, VIC, TAS, WA, and the NT. His experience includes security of payment disputes, preparation of contractual claims and responses, and alternative dispute resolution mechanisms.

EMAIL

joshua.saunders@batchmewing.com.au

PHONE

+61 416 967 296

Our latest insights

Victoria’s New Security of Payment Laws: Key Implications for the Construction Sector

Victoria’s security of payment system is expanding significantly, commencing 15 April 2026 (with some limited exceptions). Importantly, the changes will apply to existing construction contracts, as well as new contracts.

Payment Claims Under Victoria’s New Security of Payment Laws

On 15 April 2026, Victoria introduced a new security of payment regime that changes not only how construction disputes are resolved, but also how payment claims are made in the first place.

How do Vic’s New Security of Payment Laws Impact Payment Schedules?

Adjudication in Victoria now sits as a central feature of payment dispute resolution, rather than a limited or secondary option. This means paying careful attention to the preparation of payment schedules.

Vic’s New SOPA and Construction Contract Performance Security

Performance security has long been one of the most contested aspects of construction projects. Retentions and bank guarantees regularly remain in dispute well after completion. Security release can then be tied up in contractual arguments about defects, delay, or final accounts. The reforms to Victoria’s security of payment regime change that, by giving claimants a clear statutory pathway to recover performance security.