The SoP Word – What It Means for Our Industry and AWCI Australia’s Roadmap Ahead
As many of you know, I have spent significant time working with both Master Electricians Australia (MEA) and NECA – the National Electrical and Communications Association. These organisations lead the way in advocacy, education and industry development for the electrical trade. One of the most pressing issues I encountered in that space—and one that directly affects contractors, subcontractors and suppliers alike—is the SoP word: Security of Payments.
In the electrical industry, the SoP word is not just a regulatory mechanism; it is a lifeline. It exists to ensure that businesses are paid promptly for the work they carry out and the materials they supply. Without it, cash flow dries up, businesses are left exposed, and the quality and safety of projects are undermined.
Today, I want to share what I learned from that experience, why the SoP word matters for our wall and ceiling industry, and how AWCI Australia can lead the way in building a fairer, more secure payment culture for plastering contractors across the country.

1. How the SoP Word Works in the Electrical Industry

The SoP word (Security of Payments legislation) exists in every Australian state and territory. While the details vary between jurisdictions, the core principles are consistent:

• Prompt Payment – Contractors and suppliers must be paid for work performed and materials supplied within prescribed timeframes.
• Legal Right to Claim – Any party who carries out construction work (or supplies related goods and services) may serve a payment claim on the party who commissioned the work.
• Mandatory Responses – The recipient of a payment claim must issue a payment schedule within a set period—stating either that the claim will be paid in full or explaining the reasons for withholding part of the payment.
• Adjudication – If a payment schedule is not issued, or if payment is wrongfully withheld, the claimant can seek adjudication—a fast-track, low-cost dispute resolution process overseen by an independent adjudicator.
• Enforceable Determinations – Adjudicators’ determinations are binding and can be enforced as a judgment debt in court.

For electrical contractors, the SoP word provides a clear process for claiming and recovering payments without expensive litigation. It also gives head contractors and clients certainty about timelines and obligations, reducing disputes and keeping projects moving.

2. Why the SoP Word Matters to the Wall and Ceiling Industry

Our industry shares many of the same vulnerabilities as the electrical sector:

• Subcontracting Chains – Wall and ceiling work is often delivered by small to medium subcontractors working under larger builders. These businesses carry the upfront costs of labour, materials and compliance.
• Progress Payments – Work is staged, and payments are tied to milestones, making cash flow critical.
• Thin Margins – The plastering trade typically operates on slim margins. Even minor payment delays can erode profitability and risk business survival.
• Retention Funds – Retention money can be withheld for long periods, tying up working capital and exposing subcontractors to risk if the head contractor becomes insolvent.

The SoP word has the potential to protect plastering contractors just as it protects electricians. It provides a formal avenue for making claims, receiving timely payments and resolving disputes.
However, for the SoP word to deliver real benefits to our sector, we must also address our industry’s unique conditions—such as widespread use of informal contracts, variable documentation standards and low awareness of legal rights. This is where AWCI Australia can step in.

3. What Needs to Be in Place for the SoP Word to Work for Plastering Contractors
a. Industry Awareness and Education Many plastering contractors, especially small businesses, are unfamiliar with their rights under the SoP word. Others may be unsure how to prepare or issue a valid payment claim. To benefit from Security of Payments, businesses must understand:

• How to draft clear, compliant payment claims.
• The deadlines for serving claims and receiving payment schedules.
• Record-keeping best practice—contracts, variations, delivery dockets, timesheets and progress photos.

Without this foundational knowledge, subcontractors risk missing deadlines or issuing defective claims that can be rejected.
b. Clear Contracts and Documentation The SoP word works best when there is a written contract and a clear scope of work. Unfortunately, some plastering jobs are still undertaken on handshake agreements or vague purchase orders. AWCI Australia encourages members to:

• Access standardised subcontractor contracts from Doyles.
• Clearly describe work stages and deliverables.
• Agree on retention and release terms upfront.

c. Training for Builders and Head Contractors Builders must also understand their obligations under the SoP word. Payment schedules must be issued within statutory timeframes, and reasons for withholding must be documented. Educating builders can prevent disputes from escalating and reinforce trust in the supply chain.
d. Accessible Adjudication Support Even with good practices, disputes will arise. Small contractors may feel intimidated by the adjudication process. AWCI Australia already offers access to consultation with our partners Doyles Construction Lawyers, and we have commenced planning for the SoP word to be part of our 2026 Advocacy Schedule.
e. Consistency Across Jurisdictions Each state’s SoP word regime has its quirks. AWCI will review and work with state governments and continue to push for greater national consistency—simplifying compliance for contractors working across borders. This aligns with our broader call for licence harmonisation.

4. Benefits to Our Members and the Broader Industry
If implemented well, embedding the SoP word will:

• Improve Cash Flow – Faster, more reliable payments for plastering contractors and suppliers.
• Reduce Disputes – Clearer documentation and awareness will cut down misunderstandings and claims escalation.
• Professionalise the Trade – Standardised contracts and templates elevate business practices and reduce risk.
• Enhance Member Value – AWCI becomes a go-to source of practical support, legal guidance and advocacy on Security of Payments.
• Build Trust with Builders – Educating head contractors fosters stronger relationships, clearer expectations and more collaborative projects.

5. Next Steps and Call to Action
The SoP word is not a silver bullet. It won’t fix every cash flow challenge overnight. But it is a powerful tool—and when combined with good business practices, education and strong advocacy, it can transform the way our industry operates.
I encourage all AWCI members to:

• Review your current contracts and payment claim processes.
• Participate in upcoming AWCI workshops on the SoP word with our partners – Doyles Construction Lawyers.
• Book a consultation with Doyles to understand the Act and how it applies to your case.

Together, we can build a fairer, more transparent and financially sustainable future for wall and ceiling professionals across Australia.
Simon Tengende CEO – AWCI Australia