NEC updates Y(Aus) clauses for security-of-payment compliance

NEC updates Y(Aus) clauses for security-of-payment compliance
NEC has released an updated set of Y(Aus) clauses for Australia. The latest revision specifically updates the clauses for Western Australia, aligning them with the changes in security-of-payment legislation introduced in 2024.

First launched in 2021, the Y(Aus) clauses reflect NEC’s commitment to support growing use of the contracts in Australia by bringing them into line with local contract legislation. Interest in NEC has risen in the country, particularly after Sydney Water adopted them for its AU$4 billion (£2 billion) Partnering for Success initiative, which focuses on the collaborative delivery of water and wastewater works and services

Security-of-payment laws


The clauses ensure NEC4 contracts follow Australia’s various security-of-payment laws enacted in each state and territory. They include specific rules for each state and territory, so only the relevant ones apply based on where the work, services or supplies are carried out. According to Peter Colacino, NEC Australia Ambassador, ‘Security-of-payment legislation is a crucial part of ensuring fairness in the supply chain alongside the collaborative approach of NEC. The refresh of the Y clauses ensures full alignment.’

The original clause drafters were consultants Kiri Parr and Kevin Pascoe with the assistance of Consult Australia and Pinsent Masons Australia. Pinsent Masons and Owen Hayford assisted with the 2024 revisions. 
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