Victorian SOPA reforms: a performance security claim for your bonds.
Victoria's Security of Payment Act reforms, in force since 15 April 2026, introduce the performance security claim, a claim separate from a payment claim, and a notice requirement before recourse to performance security.
· Updated · Regulatory briefing · 4 min read
What's changing
From 15 April 2026, Division 1A of Part 3 of the Act (ss 17A to 17H), inserted by Act No. 43/2025, sets a statutory framework around performance security: surety bonds, bank guarantees, and other instruments held by principals under construction contracts. The reforms have two main limbs: new rights for contractors, and new obligations for principals.
The key provisions are:
A performance security claim
A performance security claim (s 17A) is a separate claim from a payment claim. It may be served alone or in conjunction with a payment claim (s 9(3)), is answered by a performance security schedule (s 17E) and is adjudicated under s 18A. bondtrack keeps the record such a claim draws on; it does not make or serve one.
Notice required before recourse
Before recourse to performance security, the Act requires notice (s 17H). The notice is a record worth keeping against the instrument it concerns.
A waiting period of at least 5 business days
After the notice, the Act requires at least 5 business days, or longer if the contract says so, before recourse (s 17H). That gives contractors a window to respond or seek advice.
Application to existing contracts
The amended Act applies to construction contracts entered into before, on or after 15 April 2026 (s 54(1)), except payment claims served and adjudication applications made before then (s 54(2)). Existing projects, and instruments already held, can fall within the new framework.
Why the scope matters
Most regulatory reforms apply only to new contracts. This one does not. Construction contracts entered into before 15 April 2026, and the bonds and bank guarantees held under them, can fall within the new framework. Contractors who have their portfolio loaded into bondtrack can see which instruments are outstanding and on which projects.
How bondtrack helps
The reforms create a formal, document-driven process around performance security. bondtrack keeps the record that process draws on. Here is what that looks like in practice.
Know exactly which instruments are outstanding
A performance security claim is only as good as your picture of what is outstanding. bondtrack keeps every unreturned Victorian bond and bank guarantee visible: which instrument, which project, which counterparty, and how long it has been outstanding. bondtrack does not make or serve the claim.
A window before any recourse
The Act requires notice, and at least 5 business days or longer if the contract says so, before recourse to performance security (s 17H). That window is only useful if you can move quickly. bondtrack keeps every instrument's details, project, and counterparty at hand, so when a notice arrives you know immediately which bond is at risk and what is at stake.
Centralised audit trail for written notices
The notice requirement means recourse to performance security generates formal records. Kept against the relevant instrument in bondtrack, they sit alongside the bond's full history, a complete, dated picture of what was served and when.
Retrospective coverage from day one
The amended Act applies to construction contracts entered into before, on or after 15 April 2026 (s 54(1)), except payment claims served and adjudication applications made before then (s 54(2)). Every Victorian instrument loaded into bondtrack potentially falls under the new rules, and a complete register shows which.
Visibility to push back with confidence
Because the Act requires notice before recourse to performance security, contractors can question a call made without it. bondtrack gives them the record of what has been served, when, and against which instrument.
The broader opportunity
These reforms signal that the legislative environment is moving toward greater protection for contractors providing bonds. The performance security claim is a new right for Victorian contractors, particularly larger construction companies sitting on unreturned instruments from completed projects.
Contractors who want to use these rights need their bond portfolio properly organised and managed, so that the record a claim draws on is complete.
This briefing is for general information only and does not constitute legal advice. Contractors should seek independent legal advice regarding the application of the reforms to their specific contracts and instruments.
Get your Victorian bond portfolio ready.
Register your interest and our team will show you how bondtrack can help you keep the record Victoria's new SOPA rights draw on.
Register Your Interest