Legal Project Management Plan & Checklist
Purpose of this Guide: Use this fork when your client holds performance security (such as a bank guarantee, retention money, or performance bond) under a construction contract and the defects liability period has expired. The Building and Construction Industry Security of Payment Act 2002 (Vic), as amended from 15 April 2026, gives claimants a statutory right to demand the release of performance security after the defects liability period under s 9(2) and s 17A. The respondent has a maximum of 20 business days to release the security under s 12. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Jurisdiction: Victoria, Australia. Performance security release claims can be adjudicated through an ANA. The s 17H notice obligation applies to any party proposing to call on security before release. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
The Process at a Glance: Once the defects liability period expires, the claimant serves a formal Performance Security Claim under s 17A within the statutory window (the earlier of 20 business days after DLP expiry or the contractually specified date). The respondent has 20 business days to release the security. If the respondent fails to release, or proposes to call on the security instead, the claimant may apply for adjudication or urgent injunctive relief. Any party wishing to call on security must first give 5 business days notice under s 17H identifying the contract, the provision relied on, the amount, and the circumstances justifying recourse. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Key Legislation and Case Law: Building and Construction Industry Security of Payment Act 2002 (Vic) - s 9(2) (statutory right to release of performance security), s 12 (20 business day payment and release cap), s 17A (formal performance security claim process at end of DLP), s 17B (forfeiture of monthly adjudication right if claim not served within window), s 17H (mandatory 5 business day written notice before any recourse to security). Key principle: failing to serve the s 17A claim within the statutory window forfeits the right to seek adjudication for release in that monthly cycle under s 17B.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Security of Payment Act Claim (Claimant) - Performance Security Release (s 17A - End of Defects Liability Period) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for COMMERCIAL_LAW cases, outlining the standard DISPUTE_LITIGATION process. Utilize these tracking templates to manage your legal cases efficiently.
Confirm DLP expiry and prepare the s 17A Performance Security Claim in advance.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Serve the s 17A claim within the earlier of 20 BD after DLP expiry or the contractually specified date.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Monitor the respondent's compliance with the 20-business-day security release obligation under s 12.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.