In November 2023, a report was tabled recommending a raft of changes to Victoria’s Security of Payment Act which, if supported by Government, would bring the Security of Payment Act in Victoria more in line with that in New South Wales and other states.
Authors
Liam Murray, Senior Associate
The County Court of Victoria has handed down its decision in Ramvek Pty Ltd v Visioneer Builders Pty Ltd [2025] VCC 1155, clarifying that a claimant can recover an unpaid scheduled amount under section 17 of the Building and Construction Industry Security of Payment Act 2002 (Vic) (SOPA) regardless of whether that amount includes an “excluded amount.”
Why this matters
Until Ramvek, there was uncertainty about whether courts would allow recovery under s 17 where excluded amounts were involved.
- Earlier indications (Newearth Constructions Pty Ltd v Scrohn Pty Ltd [2014] VCC 1735): The Court suggested that judgment could still be given, because section 17 does not contain an equivalent restriction found in section 16.
- Later guidance (Yuanda Vic Pty Ltd v Façade Designs International Pty Ltd [2021] VSCA 44): The Court held that judgment should not be given if excluded amounts were included — though this was in the context of s 16, not s 17.
Ramvek resolves the ambiguity for s 17 applications involving excluded amounts. The Court confirmed that when a payment schedule has been issued, the only requirements are those set out in section 17(1):
- A payment claim is served.
- A payment schedule is provided within the required timeframe.
- The schedule sets out the amount proposed to be paid.
- That scheduled amount is not paid in full by the due date.
Crucially, the Court does not need to be satisfied that the scheduled amount excludes any “excluded amounts.”
Practical implications
For respondents, this decision raises the stakes in preparing payment schedules. Before issuing one, a respondent should carefully consider:
- Does the claim include any excluded amounts?
- If so, is the respondent willing to commit to paying them?
Once a scheduled amount falls due, it will be recoverable in court under SOPA — even if it turns out to include excluded amounts.
More information
For more information on the proposed changes to Victoria’s Security of Payment Act, see this article “Big changes are coming to Victoria’s Security of Payment Act” by Dominic Brown which highlights some of the key changes that have been supported by the Government.
For an overview of all the reforms to the Victorian building industry and what they mean for the residential building sector, see this article “Rewriting the Rules: What Victoria’s Building Reforms mean for Developers, Builders, and Homeowners”, by Damien Simonetti, Liam Murray and Orianne Carter.
Please note: the commentary above is current at the time of publication, and is unlikely to remain relevant once the forthcoming SOPA reforms are implemented.
This is a guide only and does not constitute legal advice.