How will the Automatic Repeal of Debt Recovery Restrictions on 1 January 2021 affect your business?
 
The COVID-driven debtor relief measures have now expired.
In March 2020, Australia’s Federal Government urgently introduced The Coronavirus Economic Response Package Omnibus Act to provide debt relief and restrict a creditor’s ability to recover debts, and initiate bankruptcy or insolvency proceedings.
In a bid to support the Australian economy and business during the pandemic, the new Coronavirus Economic Response Package Omnibus Act (Cth) (‘the Act’) restricted the ways that creditors could recover their debts.
The changes to a Creditor’s Statutory Demand were:

A Creditor’s Statutory Demand could only be issued to an Corporate debtor if the debt was over $20,000. This represented an increase from the minimum of $2,000 to $20,000.
The time that a corporate debtor was required to respond to a Creditors Statutory Demand increased from 21 days from the date of receiving the Creditors Statutory Demand to a significant six months from the date of receiving the demand.

Similarly, the changes to Bankruptcy Notices were:

A Bankruptcy Notice could only be issued to an individual debtor if the debt was over $20,000.
The time that a individual debtor was required to respond to a Bankruptcy Notice increased from 21 days from the date of receiving the Bankruptcy Notice to a significant six months from the date of receiving the Notice.

These changes were automatically repealed on 1 January 2021.
To clarify, the 21-day period to respond to being issued with a Creditors Statutory Demand or Bankruptcy Notice has returned, and the minimum debt recovery amount on any undisputed debt had returned to $2000.
With the new year of 2021 ahead, it’s back to business as usual for debt recovery practitioners – although they may still be working from home.
For more information about how we can help you and your business with your commercial obligations,
please contact us on [email protected]
 
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 This publication is © Nexus Law Group and is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.
The post COVID Insolvency Window Closed: Time to chase those debtors appeared first on Nexus Lawyers.

Security of Payment legislation (NSW) Industry Update:
March 2021 Countdown To Commencement of Residential Builders Access to Security Of Payments Adjudications. 
 
From 1 March 2021, in what is a significant reform for the residential construction industry, residential builders will be able to utilize the Building and Construction Industry Security of Payment Act 1999 (NSW) (‘the SOP Act’) to obtain outstanding payments from owners.
This is a ‘gamechanger’ for residential builders and allows them access to a paper based adjudication system for resolution of payment disputes.  The paper based adjudication system through the SOP Act is cheaper and quicker than proceeding through the tribunal and court systems.  Builders will welcome this reform and owners will need to be on their toes to ensure that they don’t get caught out not complying with the strict timeframes for responses under the SOP Act.
Traditionally Residential Building Excluded From The SOP Act
From its inception the SOP Act has excluded the majority of residential builders from the payment recovery process set out in the SOP Act.
The SOP Act specifically did not apply to those construction contracts where an owner resided in or intended to reside in the residential premises being constructed.
From 1 March 2021
The Building and Construction Industry Security of Payment Regulation 2020 (‘the SOP Reg’) which was published on the NSW legislation website on 1 September 2020 will effect access for residential builders to the SOP Act from 1 March 2021, and enable residential builders to use that legislation to obtain outstanding payments from owners whether or not the owners reside in or intend to reside in the residential premises being constructed.
Resolving Payment Disputes Will Get A Lot Cheaper And Be Resolved More Expediently
Under the current regime, any disputes in relation to progress claims for residential building works are resolved in the NSW Civil and Administrative Tribunal, which has jurisdiction to determine claims up to $500,000, or the applicable court for any claims that exceed that amount.
That system involves, typically, many months of case management, culminating in a hearing to resolve the dispute.  Debt recovery proceedings can also be complicated by owners seeking to cross-claim for amounts they allege may be owing to them (e.g. for alleged defective works), and the legal costs in advocating the matter, preparing evidence and running a hearing can be prohibitive to many builders.
Enter the system under the SOP Act from stage left to the rescue.  Under the SOP Act there is a prescriptive system for:

Making a payment claim;
Responding to a payment claim;
Resolving any payment claim disputes through a paper based adjudication system;
Payment of money determined to be owing by the adjudicator;
Obtaining payment where an owner is unresponsive and does not respond within the times prescribed by the SOP Act for a claimed payment.

The adjudication system through the SOP Act is often commonly referred to as a ‘pay now and argue later’ system, and is designed to deliver a quick and cost effective interim resolution of payment disputes. Following an adjudication determination any payments must be made within five business days, and if payment is not made an adjudication certificate can be obtained from an adjudicator, filed in court as a judgment debt and enforced.
Where To From Here
Builders should ensure that:

Their contracts are drafted to permit them to make best use of the SOP Act;
Their payment claims comply with the SOP Act provisions;
They have systems in place to action the adjudication process set out in the SOP Act for any outstanding payment claims within the strict timeframes set out in the SOP Act.

Nexus can provide advice to you in relation to:

The operation of the SOP Act;
Systems that should be employed to manage the SOP Act deadlines;
Payment claim and notices to be issued under the SOP Act;
Adjudication applications under the SOP Act.

 
For more information about how Nexus Construction can help you manage your Security Of Payments, please contact us on [email protected]
The post March 2021 Countdown For NSW Residential Builders appeared first on Nexus Lawyers.

Nexus’ Principal and legal tech expert Jeremy Duffy discusses the three key things legal businesses need to undertake to start 2021 in a more cyber-secure position.
 
Nexus Principal and legal tech expert Jeremy Duffy recently chaired a session on cyber security and legal practice management at the Legal Technology Conference [i], held by the South Australian Law Society.
The session focused on how law firms can greatly reduce the risk of and damage from cyber-attacks and IT breaches through good online practices and employee education.
“Law firms and legal industry suppliers are high value targets for ransomware and cyber-attacks, as the data they house is always client-confidential and potentially industry-sensitive [ii]; and with the exponential business utilisation of technology this past year, law firms and law firm suppliers are becoming increasingly vulnerable to attack,” said Nexus Principal Jeremy Duffy.
Although the focus of the session was on law firms, Jeremy stresses that the issues raised are similar across all businesses and government generally.
The three key themes which emerged from the cyber security session chaired by Jeremy were:

Increased use of technology is leaving firms vulnerable: The impressive increase in technology uptake and use within law firms, such as audio visual and team management platforms, as a result of COVID-19 has significantly increased the risk of cyber-attack.
Cyber-attacks are increasingly being socially engineered: The number one enabler of cyber-attacks is ‘social engineering’; a process using deception to manipulate individuals into divulging confidential or personal information for fraudulent purposes. All that is needed is a telephone and Internet connection.
The importance of the ‘Essential Eight’ [i]: The Australian Cyber Security Centre has outlined eight essential practices businesses can and need to do to restrict the possibility of cyber-attack including regular software updating, restricted administration privileges, multi-factor authentication and daily backups.

“The global and social events of 2020 have changed the world forever,” said Jeremy, “The utilisation of technology within businesses and at home increased exponentially and will not diminish going forward. Technology is now a key enabler of business engagement, but it brings with it all of the risks of managing the security and integrity of business data and operations.”
Looking towards 2021, Jeremy said, “As the effects of COVID-19 continue to play out domestically and internationally, the three key things all business owners can do over the Christmas break to start 2021 in a more cyber-secure position are:

Audit your online cyber security defences: “This includes ensuring that all applications are the ‘latest version’, complex and unique passwords and multifactorial authentication are in place where possible, and data backup and retrieval processes are working appropriately and securely”.
Assess which parts of your business may be vulnerable to cyber-attack: “I highly recommend businesses take the time over the break to assess the technologies they use which may be vulnerable to cyber-attacks and to invest in the technology tools and processes available to mitigate risk in those areas.”
Educate all levels of staff on the importance of cyber-security practices: “Develop a staff awareness strategy so that employees can recognise the key cyber security threats, such as social engineering, phishing, watering hole attacks and ransomware infiltration, and collectively guard against them.”

“As well as investing in and integrating the latest IT security technology platforms, one of the best approaches any law firm can undertake to help protect their business from cyber-attack is to ensure their staff are well educated in identifying potential cyber threats, and that their business operations include robust procedures to constantly assess for potential vulnerabilities,” said Jeremy.
Jeremy Duffy sits on the Legal Technology Committee of the Law Society of South Australia.
Resources
[i] Australian Cyber Security Centre, Essential Eight Explained
[i] The Law Society of South Australia, Legal Technology Conference, 22 October 2020
[ii] Lawyers Weekly.com.au; Hackers threaten to leak data from legal services firm, 25 November 2020
Nexus has changed the way legal services are delivered: Better, Faster, Simpler
Nexus is a law firm of depth and innovation with a national footprint, led by a peer group of like-minded senior professionals. We deliver solution-focused legal services without the pretense. Our clients enjoy direct access to senior lawyers, who are trusted advisors and use our advanced group systems. This allows us to deliver time and cost efficiencies to clients. At Nexus, we deliver the right advice our clients need at the right time to make a real difference in their business.
 This publication is © Nexus Law Group and is for general guidance only.
Legal advice should be sought before taking action in relation to any specific issues. 
The post Law firms need to consider increasing cyber security measures in 2021 appeared first on Nexus Lawyers.

As we close 2020 and look forward to moving into 2021, businesses in the construction industry should consider preparing their businesses for the following activities over holiday shutdown period:
 
The NCC 2019 Amendment 1
The out of phase NCC 2019 Amendment 1 introduced a new process which is to be followed for Performance Solutions and supporting documentation. This process will come into effect 1 July 2021, in comparison to other changes in NCC 2019 Amendment 1 which took effect from 1 July 2020.
Construction industry stakeholders should review systems to prepare for the new process, which includes the following:

Prepare a performance-based design brief in consultation with relevant stakeholders
Carry out analysis using one or more of the Assessment Methods listed in A2.2(2) of NCC Volume 1, as proposed by the performance-based design brief
Evaluate the results from the analysis against the acceptance criteria in the performance-based design brief
Prepare a final report that includes:

All Performance Requirements and/or Deemed-To-Satisfy Provisions identified through A2.2(3) of NCC Volume 1 or A2.4(3) of NCC Volume 1
Identification of all Assessment Methods used
Details of steps (a) to (c) above
Confirmation that the Performance Requirement has been met; and
Details of conditions or limitations, if any exist, regarding the Performance Solution.

The other amendments introduced by the NCC 2019 Amendment 1, which came into effect as from 1 July 2020, include the following:

Aluminium composite panels are required to be labelled in accordance with Standards Australia Technical Specification 5344 Permanent Labelling for Aluminium Composite (ACP) Products
Clarification of the concession in NCC Volume 1 permitting the use of timber framing for low-rise class 2 and 3 buildings; and
A new provision in the NCC Volume 1 regarding egress from early childhood centres – every part of a class 9b early childhood centre must be wholly within a storey that provides direct egress to a road or open space, unless:

The building has a rise in storeys of not more than two levels; and
The early childhood centre is the only use in the building.

 
Design and Building Practitioners Act 2020: Review processes and contracts to ensure you are compliant  
We have previously reported on the changes coming with the Design and Building Practitioners Act 2020 – in particular the statutory duty of care, design and construction compliance declaration process, registration requirements (click here to read previous article).
The NSW Government has now released for public comment the draft Design and Building Practitioners Regulation and has called for submissions to be issued by 5.00pm Monday 11 January 2021.
The draft regulations contain the detail in relation to the application of the Design and Building Practitioners Act to class 2 buildings (including multi-storey residential buildings and mixed residential and commercial use buildings).
The regime that is being introduced mid 2021 through the remaining parts of the Design and Building Practitioners Act that will come into effect and the Design and Building Practitioners Regulations will bring in reforms that include regulate sign offs for designs, variations and ‘as-built’ constructed works, registration of practitioners, notification of intention to apply for an occupation certificate, and requirements that stakeholders obtain adequate insurance.
Stakeholders should take this opportunity now to review processes and contracts and sub-contracts suites that are used by their business to ensure that they are ready for the Design and Practitioner regime when it commences mid-2021.
We can provide structured advice and contract review to assist with your preparation for these reforms.
 
Security of Payment Claims: Prepare for Claims over the Christmas and New Year period
During the end of year shut-down period it is not uncommon for payment claims to be served.
Businesses should take steps to ensure that a skeleton staff is employed to monitor their principal place of business to ensure that any payment claims that are lodged over this period are identified and responded to or advise sought.
Payment claims must be responded to within 10 business days or a shorter period specified in the relevant construction contract. While business days are defined in the Security of Payment legislation as excluding public holidays, Saturdays, Sundays and the period 27 – 31 December (inclusive), construction industry stakeholders should ensure that offices are sufficiently staff to identify that payment claims have been served over the shut-down period and enable a response to payment claims within the time prescribed by the Security of Payment legislation and relevant construction contract.
 
Contract administration: Attend to your payment claims, so you are able to claims for extensions of time permitted for the shutdown period
It is important to comply with contract provisions in relation to claims for extension of time to avoid later disputes regarding liquidated damages and to avoid the New Year regret that can come with failing to comply with a contractual obligation regarding an extension of time process.
 
The Construction sector remains a driving force for the economy and Nexus looks forward to helping you navigate and succeed in new year. For more information about how Nexus Construction can assist, please contact us on [email protected]
The post Nexus Construction & Infrastructure Top Tips for 2021 appeared first on Nexus Lawyers.

2020 has been a difficult and turbulent year for many, starting with the devastating bushfires quickly followed by the unprecedented and lasting impact of the COVID-19 pandemic.
In response to the COVID-19 pandemic, the Federal and State Governments enacted emergency legislation to provide temporary relief measures for individuals and businesses, with these measures extended throughout the year. The provisions providing a temporary safe harbour for directors from personal liability for insolvent trading and the temporary changes to the creditors statutory demand regime are due to expire on 31 December 2020. Businesses should be taking urgent steps to prepare for this deadline to avoid a New Years Day hangover that is worse than usual.
In addition to the COVID-19 emergency measures, NSW has continued with its structural legislative reforms aimed at improving quality and public confidence in the construction sector. The roadmap for reform of the construction sector was announced in February 2020, with the NSW Government’s Six Pillar Reform Plan targeted at:

Building a customer service regulatory framework
Building rates systems
Building skills and capabilities
Building better procurement methods
Building a digital future
Building the reputation for quality research

Industry and government working groups are focused on actioning each of the Six Pillars, and Nexus will continue to closely follow and report on developments throughout the course of 2021.
Key legislative moments for Australia’s Construction & Infrastructure industry this year included:

Introduction of the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) implementing temporary changes to the creditors statutory demand regime with an increase of the statutory minimum from $2,000 to $20,000 and the statutory period from 21 days to 6 months, and temporary relief for directors from their personal duty to prevent insolvent trading. This relief package is due to expire 31 December 2020.
Design and Building Practitioners Act 2020  (commenced in part on 10 June 2020, with the statutory duty of care provisions in effect from that date and the balance of the Act apart from the specialist work provisions scheduled to commence on 1 July 2021).
Design and Building Practitioners – Draft Regulations, which are planned to commence in 2021, were released November 2020 and are currently going through the public consultation process, with public submissions on the proposed regulations due by 11 January 2021.
Building and Development Certifiers Act 2018 and Building and Development Certifiers Regulation 2020 commenced on 1 July 2020.
Adoption of the out of cycle NCC 2019 Amendment 1 on 1 July 2020.
Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 commenced on 1 September 2020.
Announcement of Project Remediate in November 2020 by the NSW Government targeting at meeting the interest costs on commercial loans for high risk combustible cladding remediation and quality assurance measures for the remediation works.
The Supreme Court of NSW finding in November 2020 against business interruption insurers, holding that an exclusion clause which is commonly used in business interruption insurance policies, referring to legislation that was repealed prior to the COVID19 pandemic, cannot be relied upon to exclude claims for business interruption due to COVID19

The Construction sector remains a driving force for the economy and Nexus looks forward to working with you in 2021 to help navigate and succeed in this new legislative landscape.
The post Nexus Construction & Infrastructure 2020 Round Up appeared first on Nexus Lawyers.

Large businesses in Australia will start the new year having to publicly report their payment practices to small businesses. 
Under the new Payment Times Reporting Scheme which commences on 1 January 2021, approximately 9000 large business in Australia will now be required to publicly report their payment terms and practices in respect of their small business suppliers.
The first reporting period under this new scheme will be from 1 July to 31 December 2021. The payment times report for this period must be given to the Regulator by 30 March 2022. Reporting entities will need to report on a bi-annual basis, with the second reporting period from 1 January 2022 to 30 June 2022.
Why do we have the Payment Times Reporting Scheme?
The primary objective of the Payment Times Reporting Scheme [1] is to provide increased transparency on the time it takes large business to make payments to their small business suppliers and thereby improve the speed of the payment processes overall.
Late payments are a significant source of financial pain for Australian small and medium businesses (SMBs), with an estimated $115 billion in payments from large businesses to SMBs paid late each year.
When SMBs are paid late, it pressures them financially and impacts investment and employment and constrains overall economic potential. Small businesses generate a third of private-sector gross domestic product and employ nearly half of all workers.[2]
Objectives of the Reporting Scheme

Capture increased information on the payment practices of large business and government agencies to small business suppliers.
Make the reported information publicly available, thereby providing transparency and influencing payment practices.
Apply a monitoring and compliance framework enabling the Regulator to publish non-compliance, require audits and issue infringement notices.

 
Who is a Large Business under the scheme?
Approximately 9000 large business and government agencies are expected to be subject to the Scheme. A Reporting Entity will be within the reporting threshold if it carries on business in Australia and is either a:

Large businesses and certain government enterprises with total annual income over A$100m.
Controlling Corporations where the combined annual income for all members is more than $100m.
Businesses with total annual income greater than $10m and part of a Controlling Corporation group.

 
Who is a Small Business Supplier?
A small business is expected to be any entity that carries on an enterprise in Australia with an annual turnover less than A$10m for the most recent income year.  
Reporting content
Basic information regarding the Reporting Entity must be provided with the key payment information being:

The shortest and longest standard payment periods that the business offers to small business
The proportion, determined by total number and total value, of small business invoices paid by the entity during the reporting period within certain payment periods
The proportion (by value) of procurement that was from small-business suppliers during the reporting period.
Whether supply chain finance is offered

 
When and how to report
The first reporting period is from 1 July 2021 to 31 December 2021.
The payment times report for this period must be given to the Regulator by 30 March 2022. Reporting entities will need to report on a bi-annual basis, with the second reporting period from 1 January 2022 to 30 June 2022.
The Regulator will establish and access be available from December 2020 to the full reporting portal. Submitted information will subsequently be made available on a public Payment Times Reporting Register also managed by the Regulator.
Potential penalties
Potential financial penalties are significant and include:

Nature of contravention
Maximum penalties

Failure to report
300 penalty units* (which can be applied per day of non-compliance)

False or misleading reports
0.6 per cent of the total income year in which the contravention occurred

Failure to keep records
0.2 per cent of the total income for the income year in which the contravention occurred

Failure to comply with audit notice
200 penalty units (which can be applied per day of non-compliance)

Failure to reasonably assist the auditor
0.2 per cent of the total income for the income year in which the contravention occurred

Source: Payment Times Reporting Bill 2020. *On or after 1 July 2020 1 penalty unit equals $222
Additional guidance to be issued
More information about this will be available in the Guidance Material, scheduled for publication by the Regulator before 1 January 2021.

Recommended Action items
Large businesses should begin to engage stakeholders and SMB suppliers to consider the requirements of the Scheme.
Follow the Additional Guidance to be issued by the Regulator.
How can we help
For more information on the Payment Times Reporting Bill or this Update, please contact Nexus Group Principal Colin Miller on [email protected]
Resources
[1] Payment Times Reporting Act 2020 and Payment Times Reporting (Consequential Amendments) Act 2020
[2] Xero Small Business Insights, Paying the price, Xero Small Business Insights, June 2019
Nexus has changed the way legal services are delivered: Better, Faster, Simpler
Nexus is a law firm of depth and innovation with a national footprint, led by a peer group of like-minded senior professionals. We deliver solution-focused legal services without the pretense. Our clients enjoy direct access to senior lawyers, who are trusted advisors and use our advanced group systems. This allows us to deliver time and cost efficiencies to clients. At Nexus, we deliver the right advice our clients need at the right time to make a real difference in their business.
 This publication is © Nexus Law Group and is for general guidance only.
Legal advice should be sought before taking action in relation to any specific issues. 
The post Australia’s new Payment Times Reporting Scheme will commence 1 January 2021 appeared first on Nexus Lawyers.

NSW Government Launches A Rescue Package for NSW Residential Apartment Buildings Containing Combustible Cladding
Owners of residential apartment buildings and construction industry stakeholders will welcome the launch of Project Remediate, a NSW Government scheme focused on providing financial assistance and technical/quality assurance measures to the owners of residential apartment buildings affected by high risk combustible cladding.
As announced within the NSW Budget 2020/21, the NSW Government has committed to meeting the interest costs on commercial loans for combustible cladding remediation carried out on high risk residential apartment buildings (as identified by the NSW Cladding Taskforce and consent authorities).
The assistance provided to owners through Project Remediate will likely incentivise owners to remediate problematic cladding, and, in turn, the financial assistance delivered through the package may permit resources to be allocated by owners to explore the recovery of rectification costs from responsible supply chain stakeholders.
Background
Combustible Cladding (ACPs)
Combustible cladding, commonly comprising aluminum composite panels (also known as ‘ACPs’) consisting of flammable plastic sandwiched between sheets of aluminum, has presented building owners with legacy issues and incredibly high remediation and replacement costs to mitigate the fire risk associated with this type of cladding.
NSW Cladding Taskforce
The inter-agency ‘Cladding Taskforce’ was established by the NSW Government in June 2017, to spearhead action and reforms in NSW concerning the fire safety risks associated with the use of ACP cladding on buildings in NSW.
NSW 2020-2021 Budget Remediation Allocation for Residential Apartment Buildings
In its 2020 budget, the NSW Government provisioned an allocation of $139M to co-ordinate the remediation process for affected residential apartment buildings.
A key program funded by that budget allocation is a three-year program titled ‘Project Remediate’, which will provide financial assistance and technical/quality assurance for building owners.
Initially Project Remediate will target approximately 225 affected residential apartment buildings known to the Cladding Taskforce as high-risk buildings requiring urgent remediation works.
Key Elements: Technical & Financial Assistance
While the details of the scheme are scheduled to be announced in December 2020 or early 2021, the key elements of Project Remediate involve two key pillars:

Financial Assistance: Through the NSW Government paying the interest on loans by commercial lenders to building owners and owners corporations
Project Assurance Service: Through the appointment of program assurance managing contractors coordinated through the Office of the NSW Building Commissioner to control risks, costs and quality of remediation works, at no additional cost to owners

Eligibility
The NSW Government has indicated that the eligibility criteria will comprise:

The building must be a residential apartment building (Class 2) in NSW – residential apartment buildings and mixed use buildings that are part commercial and part residential
The building must have been assessed by the Cladding Taskforce and consent authority to contain high risk combustible cladding material in its façade that requires remediation.

Further detail on eligibility will likely emerge with further announcements expected in December 2020 / early 2021.
At this stage, the NSW Government has indicated applications for the scheme will likely open in March 2021.
Key dates
The key dates which are currently timetabled for the Project Remediate scheme are:

 Program design and loan scheme details announce
Late 2020 / Early 2021

Tender process for program assurance managing contractor
February 2021

Applications open for building owners
March 2021

Impact
The Project Remediate Scheme will be welcomed by key building industry stakeholders, owners corporations and building owners.
It will encourage more building owners to progress with plans for remediation of at-risk combustible cladding in circumstances where:

The suggested Quality Assurance program will provide welcome technical assistance for building owners; and
The Financial Assistance package, which sits at the core of the scheme and will defray the costs of rectification works by meeting the interest costs of loans from commercial lenders, will provide much needed financial assistance for building owners.

There are options available for owners corporations and building owners to explore to recover rectification costs from various members of the supply chain, and it is likely that these options will be considered by owners corporations and building owners on the back of the Project Remediate scheme.
Nexus is actively monitoring Project Remediate Scheme and will provide updates as details are announced.
 
If you require assistance in relation to any combustible cladding issues or have queries in relation to the Project Remediate Scheme, please contact us on [email protected]
Resources: NSW Government, Projects & Initiatives, Project Remediate
 
Nexus has changed the way legal services are delivered: Better, Faster, Simpler
Nexus is a law firm of depth and innovation with a national footprint, led by a peer group of like-minded senior professionals. We deliver solution-focused legal services without the pretense. Our clients enjoy direct access to senior lawyers, who are trusted advisors and use our advanced group systems. This allows us to deliver time and cost efficiencies to clients. At Nexus, we deliver the right advice our clients need at the right time to make a real difference in their business.
 This publication is © Nexus Law Group and is for general guidance only.
Legal advice should be sought before taking action in relation to any specific issues. 
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“Nexus is very proud sponsor the Centre Of Legal Innovation and  ALPMA combined virtual conference, Innovation and Legaltech Week 2021. The event’s theme of ‘Reflect, Reset and Go’  is of impactful significance to the industry. The conference is the Annual premier event for the ALPMA, who has combined forces to produce a week of back to back sessions focused on innovation, future technology and practice building,” said Nexus Law Group’s Manager Director Marcus McCarthy
Nexus Law Group’s Manager Director Marcus McCarthy and National Marketing & Business Manager, Justine Lamond, will be speaking at two of the sessions; while both Nexus Law Group and Nexus Expedite are sponsoring two other sessions.
“The Australian Legal sector has not endured so much change as it has over the last decade with the advent of NewLaw and now COVID. It has fundamentally changed the legal landscape. The 2021 LegalTech week is about sensibly understanding and navigating this change as we move into the new post-COVID world. It is a chance also for lawyers to explore what NewLaw alternative practice options like Nexus exist out there in the market.” said Marcus McCarthy
Click here to register for this key industry event

 
 
 
 
 
 
The post Nexus sponsors Innovation & LegalTech Week 2021 appeared first on Nexus Lawyers.

Ben is a Partner at Nexus and is the National Practice Director – Construction & Infrastructure. He has practised both within in-house environments (working for a project home builder with a footprint in NSW, Queensland and Victoria) and in private practice, acting for developers, builders, subcontractors, and property owners in relation to construction law matters. Ben has acted for clients in the NSW Civil and Administrative Tribunal, NSW courts, Victorian Civil and Administrative Tribunal, Victorian courts, and Federal courts.
The post Ben Robertson appeared first on Nexus Lawyers.

Nexus Law Group is excited to announce the appointment of Ben Robertson as Partner in charge of the Sydney office and National Practice Director of Construction and Infrastructure team.
Ben formally headed the construction practice at Madison Marcus and joins Nexus with over two decades of private practice and in-house legal experience with one of the largest project homes builders in Australia.  During his career, Ben has represented all stakeholders in the construction industry including Builders, Developers, large civil contractors and specialist trades. Ben is a published author on construction law and his combined experience provides him with unique insight and skills to achieve consistently excellent results for his clients. Ben acts for clients in both ‘front-end’ contract advisory and contested disputes before the Courts.  Like the rest of the construction team at Nexus, he is in an expert in Building Industry Security of Payment legislation and conducts complex Adjudications in each state.
“Construction has always at the core of our commercial practice at Nexus,” said Nexus Law Group Managing Director Marcus McCarthy. “We are excited to have Ben lead our already strong Construction practice and I am looking forward to working with him to take our unique business model into the future.  Nexus is already one of most well established NewLaw firms in Australia and as part of the leadership team, Ben will have a huge impact on where we take the business in the future”.
“Nexus has a long and proven history within the construction and infrastructure sector and I am excited to join the team. I look forward to helping clients navigate the opportunities and challenges available in the new year.” said Ben Robertson. “  I am particularly excited to work in a business with such an innovative business model – Nexus has a unique structure that is highly beneficial for lawyers and I am excited about the prospect of working with other specialist lawyers who are also looking for something more from their legal career.
Commenting on the new year ahead, Ben said “2021 will see an impressive increase of activity within Australia’s construction and infrastructure sector, as it will be driven by COVID-19 Budget stimulus packages and a reinitiating of work put on hold due to the pandemic. Now more than ever clients need high quality solutions-focused legal advice. I believe Nexus is well placed to deliver that advice across a range of practice areas. We look forward to continuing to provide clients with what they need to make a real difference to their business.”
For more information on how Nexus can assist with your construction or infrastructure needs, contact us on [email protected]
The post Nexus Law Group strengthens Construction & Infrastructure practice with new National Practice Director appeared first on Nexus Lawyers.

Nexus Law Group’s Managing Director Marcus McCarthy was recently invited to speak on a Newcastle Law School panel on the Future of Legal Services, alongside the Dean of the Newcastle Law School Professor, Tania Sourdin, and Executive Director of the Centre for Legal Innovation, Terri Mottershead.
Dr Bin Li moderated the webinar while panelists discussed:

The NewLaw Landscape
Law in 2030
LawTech – Positive Innovation or Negative Disruption?
Growth areas for the Profession
Navigating the new legal landscape

“NewLaw is more than just business models focused on online technologies or delivering fixed-price legal services. It is about liberating the practice of law from the structures which have historically limited career growth paths and positive outcomes for legal professionals. While a decade ago new legal business models emerged, for the most part, NewLaw is about legal professionals thinking of new ways of doing business, through technology or other means, to create a better situation for both themselves and their clients. No single model will be the ultimate answer. The key is flexibility in the mode of delivery of legal services,” said Marcus.
Click here to watch the Newcastle Law School Link & Learn webinar discussion, ‘Law and Technology – The Future of Legal Services’.
 
 
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“Nexus is proud to be sponsoring this year’s HIA Hunter Housing and Kitchen & Bathroom Awards. With such a turbulent 2020, it is exciting to be able to celebrate the successes in our industry,” said Nexus Law Group’s Manager Director Marcus McCarthy, “2021 will undoubtedly bring with it a new world of opportunities and challenges, and we’re ready to help our clients navigate them. We specialise in construction and are committed to delivering the legal advice our clients need to make a real difference to their business. ”
Click here for more information about how Nexus can assist or contact us on [email protected]
Click here more information about the HIA Hunter Housing and Kitchen & Bathroom Awards

 
 
 
 
 
 
The post Nexus sponsors HIA’s 2020 Hunter Housing and Kitchen & Bathroom Awards appeared first on Nexus Lawyers.

Their October 2020 issue, the Hunter Business Review featured an article by Nexus Law Group Manager Director Marcus McCarthy and Group Principal Simon Fosterling on Understanding the Pros and Cons of Surety Bonds.
“An aura of uncertainty exists around whether surety bonds really are ‘as good as’ bank guarantees,” said commenting on the article, Group Principal Simon Fosterling, “Some of key points to be aware of that help manage and dispel this uncertainty include:
• Contracts may set out required wording for security to be
unconditional, and the wording on a surety bond can be exactly the same unconditional wording as on a bank guarantee.
• Often the credit rating of the insurance company issuing the surety bond will be just as good if not better than the credit rating of the banks issuing the bank guarantee.
• Surety bond providers will usually be able to provide a list of organisations that routinely accept surety bonds, which can help demonstrate general industry acceptance of surety bonds.”
Click here to to read this article in full. 
For more information about we can help you get the right security in place for your project, please contact Nexus Law Group on [email protected]
 
 
 
 
 
The post Hunter Business Review: Nexus article on Understanding the Pros & Cons of Surety Bonds appeared first on Nexus Lawyers.

In April 2020, the reporting deadline for entities subject to the mandatory reporting regime under the Modern Slavery Act 2018 (Cth) (‘MSA’) was extended by three months due to the significant impact of COVID-19.
This means that businesses who report in accordance with the Australian financial year have only six months to prepare and publish their Modern Slavery Statement (‘Statement’).
The MSA creates mandatory reporting obligations for entities that have:

Consolidated revenue of at least $100 million for the relevant reporting period, and which
Are Australian entities, or
Undertake business in Australia in that financial year.

The updated timelines for reporting are as follows:  

Annual financial reporting period
Original reporting period under Modern Slavery Act
Original date for submission of Statement
Extended date for submission of Statement

1 Jul – 30 Jun
(Australian Financial Year)
1 Jul 19 – 30 Jun 20
31 Dec 20
31 Mar 21

1 Jan – 31 Dec
1 Jan 20 – 31 Dec 20
30 Jun 21
No change

1 April – 31 Mar
1 Apr 19 – 31 Mar 20
30 Sept 20
31 Dec 20

Note that the timeline extensions only apply to the current reporting period.  
Online Reporting now open
The Online Register of Modern Slavery Statements www.modernslaveryregister.gov.au is now active. This Register is managed by the Australian Border Force (a division within the Department of Home Affairs).
It is important to note that the Register is public and once a Statement is published, it can be accessed by a search of the Register.
Modern slavery reporting content needs to be reassessed due to COVID-19
The recent pandemic has forced required reporting entities who have been impacted by COVID-19 to reassess their approach and potential disclosure.
The Australian Border Force has published additional Guidance which suggests reporting entities include a discussion on the impact of COVID-19 in their Statement, including:

The impact on the scope of the reporting entity’s operations
New supply chains for additional products required due to COVID-19, such as personal protective equipment, or changes to supply chains due to COVID-19
How COVID-19 has changed risk profiles within the reporting entity’s operations and supply chains, e.g. COVID-19 may limit the entity’s ability to conduct in-person audits of suppliers, leading to a heightened modern slavery risk
The impact of COVID-19 on planned activities to address modern slavery risks, or on the reporting entity’s capacity to prepare the statement
The impact on the reporting entity’s ability to assess and address modern slavery risks.

Next Steps
Businesses required to report under the MSA should reassess their reporting in light of the additional Guidance. Although the three-month extension appears helpful, reporting entities should not postpone their preparations. In fact, COVID-19 is likely to have exacerbated potential areas of risk in supply chains. The methodology we recommend to address MSA reporting requirements is set out within this diagram.
Note: The MSA regime defines modern slavery to incorporate conduct that would constitute an offence under existing human trafficking, slavery and slavery-like offence provisions set out in Divisions 270 and 271 of the Commonwealth Criminal Code.  Modern slavery under the MSA therefore encompasses slavery, servitude, the worst forms of child labour, forced labour, human trafficking, debt bondage, slavery like practices, forced marriage and deceptive recruiting for labour or services.
How can we help: For additional information on the Modern Slavery Act or assistance in complying with the new deadline, please email Nexus Group Principal Colin Miller on [email protected]
Click to download a pdf copy of this article
Resources

Australian Government, Department of Home Affairs, Criminal Justice – Modern Slavery Act: Updated 25 August 2020
Modern Slavery Act Methodology diagram © Nexus Law Group Colin Miller

Nexus has changed the way legal services are delivered: Better, Faster, Simpler
Nexus is a law firm of depth and innovation with a national footprint, led by a peer group of like-minded senior professionals. We deliver solution-focused legal services without the pretence. Our clients enjoy direct access to senior lawyers, who are trusted advisors and use our advanced group systems. This allows us to deliver time and cost efficiencies to clients. At Nexus, we deliver the right advice our clients need at the right time to make a real difference in their business.
 This publication is © Nexus Law Group and is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.
The post Modern Slavery Act Update: Due to COVID-19, reporting deadlines have changed appeared first on Nexus Lawyers.

Nexus Law Group’s Manager Director Marcus McCarthy was invited to the Newcastle University School of Business to present to graduate MBA students on the Foundations of Corporate Governance.
The lecture covered the history and genesis of corporate governance principles through to what it means in practice today, as well as many of the interesting horror stories along the way.
Speaking to students at the seminar, Marcus said: “Corporate Governance is a fundamental part of civil society and economic activity across the globe. Well run companies with strong governance is the foundation for successful business and society as a whole. It is probably one of the most important areas of law for business students to understand and implement in their professional careers.”
The students were highly engaged and it is intended that Nexus will be delivering this seminal lecture series annually for the Masters Degree at Newcastle University.
The session was filmed and we will be posting a highlights reel in due course. 
 
 
 
 
 
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NewLaw firm Nexus Law Group is proud to announce its expansion into the Not For Profit (NFP) sector with the appointment of NFP specialist Hannah Rose.
Group Principal Hannah Rose brings to Nexus over eleven years legal experience; including over seven years specialising solely in Australia’s Not For Profit (NFP) sector, has held board positions and acted as Company Secretary for a number of non-profit organisations. Hannah joins Nexus from a national law firm where she led the NFP corporate advisory team.
Hannah provides specialist corporate and commercial advice and assistance to not-for-profit organisations, charities and social enterprises on matters concerning company structure, governance, compliance obligations and operations.
She also acts as General Legal Counsel and Company Secretary for non-profit organisations and advises government bodies, corporates and high-net-worth individuals interested in undertaking not-for-profit businesses or activities with a social purpose.
“Australia’s Not For Profit sector requires specialist insight and experience. With Hannah’s expertise, Nexus is excited in now being able to service this new market and providing Australian charities and NFP organisations with access to Nexus’s national network of highly qualified  lawyers,” said Marcus McCarthy, Founder and CEO of Nexus Law Group.
Commenting on her move to Nexus, Group Principal Hannah Rose, “In everchanging legal, compliance and regulatory environments, Australia’s not for profit sector can be better serviced by a NewLaw firm which truly understands the specific challenges they face, is flexible and cost effective in how these services are delivered. I’m excited to have joined Nexus and be able to deliver the tailored support they need.”
“Nexus is focused on creating a firm of depth, based on the concept of positive innovation for our profession. I am extremely proud that we have delivered something truly unique and positive for lawyers in a difficult legal market. We intend to grow our network carefully, with lawyers who have a passion for doing law in a better way for their clients and in a more rewarding environment for themselves,” said McCarthy.
For more information on how Nexus can support your NFP organisation, contact us on [email protected]
The post Nexus Law Group expands into Not For Profit sector appeared first on Nexus Lawyers.

The Nexus Team held its first COVID safe conference at Angel Place, Sydney last week with both in person and virtual attendees from around the country. The group discussed the effects of COVID on them and their clients, the Budget and incoming regulatory change, and changing client needs in 2021.
Speaking at the national conference, Nexus Law Group’s Manager Director Marcus McCarthy, said, “After the year that was, it was great to get together and focus on our plans moving forward. As we move into a new post-COVID era, 2021 will undoubtedly be a complex and challenging year for clients. Against this background, Nexus’ Client Promise remains more important than ever – to make a positive and real difference to our clients, by providing them with the best lawyer and right advice at the right time.”
The post Nexus Conference 2020 appeared first on Nexus Lawyers.

COVID is having a significant braking effect on the economy and construction contractors are not immune. 
Depending on jurisdiction, contractors may already have been hit by recent changes to Security of Payment legislation – effectively preventing use of subcontractor retention as working capital.
Many contractors are looking at options to free working capital to help see them through COVID, and to take advantage of opportunities that will inevitably arise what goes here.
Contracting businesses might typically provide bank guarantees as security, but this can tie up substantial amounts of working capital.
Are surety bonds any different? And what are the pros and cons of using them?

Security provided on the basis of assets not just cash
A significant difference between bank guarantees and surety bonds is that a bank will require cash in the bank to issue a bank guarantee, whereas insurance companies do not require cash to be held to issue surety bonds.
Instead, insurance companies can issue bonds on the basis of other assets as well. This means that a clear benefit of providing surety bonds rather than bank guarantees is the freeing up of working capital.
Surety bonds can be substituted for bank guarantees
If a contractor has already provided bank guarantees as security for a job, clients may be willing to exchange them for surety bonds, and certainly for future projects, contractors can consider providing surety bonds instead of bank guarantees.
Surety bonds may not be available to all contractors
The assets and financial records of an organisation will, to a large degree, determine the value of insurance bonds that an insurance company is willing to provide.
This means that surety bonds may not be available to smaller organisations with limited assets or new companies without a solid financial record. The market is constantly evolving however, so contractors considering insurance bonds would be well advised to maintain contact with providers.
Pricing for both bank guarantees and surety bonds can vary
Factors influencing price of surety bonds and bank guarantees may vary, including the market, the institution providing the bank guarantee or bond, and the nature of commercial relationships involved.
An aura of uncertainty exists around whether surety bonds really are ‘as good as’ bank guarantees
Some of the key points frequently raised to dispel uncertainty include:

Contracts may set out required wording for security to be unconditional, and the wording on a surety bond can be exactly the same unconditional wording as on a bank guarantee.
Often the credit rating of the insurance company issuing the surety bond will be just as good if not better than the credit rating of the banks issuing the bank guarantee.
Surety bond providers will usually be able to provide a list of organisations that routinely accept surety bonds, which can help demonstrate general industry acceptance of surety bonds.

 
For more information about we can help you get the right security in place for your project,
please contact Nexus Law Group on [email protected]
The post Surety Bonds vs Bank Guarantees: Understanding the pros & cons appeared first on Nexus Lawyers.

Hannah provides corporate and commercial advice and assistance to not-for-profits, charities and social enterprises on matters concerning their establishment, structure, governance, compliance obligations and operations. She also advises government bodies and corporates seeking to undertake not-for-profit businesses or activities with a social purpose.
Her practice primarily involves assisting clients with implementing appropriate legal structures including when merging or starting new activities; drafting constituent documents; working with the various regulators to obtain relevant registrations and tax benefits; and implementing measures to ensure good governance, including implementing on-boarding processes for directors, conducting governance training, implementing sub-committees and drafting sub-committee charters, and implementing or facilitating board assessments and review processes.
Hannah regularly helps charities obtain or change their charitable status, understand their obligations when fundraising and enter into arrangements that allow them to collaborate with others to achieve their goals (such as auspicing, funding, fundraising and service agreements). She helps resolve disputes between boards in federated structures, board members and/or members and assists charities to respond to ACNC investigations and other regulator enquiries. Hannah also acts on a retained basis for a number of non-profits providing legal counsel and company secretary services.
The post Hannah Rose appeared first on Nexus Lawyers.

One of Australia’s most successful NewLaw firms, Nexus Law Group, has appointed Regulatory and Compliance specialist Colin Miller and Employment Law specialist Roger Lewis as Principals of its newly established Perth office.
Group Principal Colin Miller brings over 30 years of Australian and international experience delivering legal expertise within the areas of Governance, Regulation and Compliance (GRC). Having spent more than a decade working in Asia, Colin brings a new practice capability to Nexus nationally, with a deep understanding of GRC management, cross border issues, and expertise in Corporate and Commercial law. During his career, Colin has worked for top tier law firms and held senior legal and compliance roles with a number of global financial services firms and fund managers and was the Head of Legal for NAB WA.
Principal Roger Lewis is a highly experienced employment and WHS lawyer with over 20 years working primarily in mining and related industries. Roger has acted as both solicitor and advocate for businesses in the Fair Work Commission and the Federal Circuit Court. Before working for the Fair Work Commission, Roger acted on behalf of employer’s in negotiation of enterprise bargaining agreements and has extensive experience in the conduct of unfair dismissal and general protection claims.
“The establishment of solid leadership in our new Perth office marks an important step in the continued growth of the Nexus practice structure nationally,” said Marcus McCarthy, Founder and CEO of Nexus, “Over the past few years, we have been focused on building our core management team and carefully growing Nexus through the appointment of the right people at the right time, appointing those who align with our cultural values. We’re proud to have lawyers of such calibre joining our firm and strengthening our service offering for clients nationally. Colin and Roger truly understand the nature of what we are trying to build and will have a great impact on our firm both in Perth and with our Group Principals in other states”.
“We are focused on creating a firm of depth, based on the concept of positive innovation for our profession. I am extremely proud that we have delivered something truly unique and positive for lawyers in a difficult legal market. We intend to grow our network carefully, with lawyers who have a passion for doing law in a better way for their clients and in a more rewarding environment for themselves,” said McCarthy.
The post Nexus Law Group opens new Perth office appeared first on Nexus Lawyers.