Victorian SOPA reforms: contractors now have the right to claim back their bonds.
Victoria's upcoming Security of Payment Act reforms introduce one of the most significant changes to performance security law in the state — a statutory right to compel the return of unreturned bonds and bank guarantees, backed by formal procedural protections before any bond can be called.
Regulatory briefing · 4 min read
What's changing
From 1 September 2026, Victoria's SOPA reforms introduce a new 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 four key provisions are:
Statutory right to claim the return of performance security
Contractors can now issue formal payment claims under the VIC SOPA framework to compel the release of their bonds and bank guarantees. This is a statutory right — not just a contractual one — which means it carries the procedural weight of the Security of Payment Act, including adjudication rights if a claim is disputed.
Written notice required before calling a bond
Before a principal can call on a bond or bank guarantee, they must first serve a written notice that identifies the contractual basis for the call, the amount being called, and the circumstances. Calls made without a compliant notice are not permitted under the reformed framework.
Mandatory 5-business-day waiting period
After serving the written notice, the principal must wait a minimum of 5 business days before the call can proceed. This gives contractors a guaranteed window to respond, seek advice, or challenge a non-compliant call.
Retrospective application to on-foot contracts
The reforms apply to all construction contracts that are on foot as at 1 September 2026 — not just contracts entered into after that date. This means existing projects, and instruments already held, fall within the new framework immediately.
Why the retrospective scope matters
Most regulatory reforms apply only to new contracts. This one doesn't. Every construction project already underway in Victoria on 1 September 2026 — and every bond or bank guarantee already held under those contracts — falls within the new framework from day one. Contractors who have their portfolio properly loaded into bondtrack will have immediate visibility over which instruments are covered, and will be positioned to act on these new rights from the moment the reforms commence.
How bondtrack helps
The reforms create a formal, document-driven process around bond calls and returns that maps directly to what bondtrack is designed to manage. Here is what that looks like in practice.
Statutory payment claims for bond returns
bondtrack already generates statutory payment claims under the WA Security of Payment Act for customers with unreturned instruments. From September 2026, the same workflow applies to Victorian bonds and bank guarantees. Contractors with unreturned instruments from completed projects have a compelling new tool — bondtrack generates the claim.
Calling notice tracking and alerts
Contractors now have a guaranteed 5-business-day buffer before a bond can be called. bondtrack can track received calling notices and alert users before that window closes, replacing the current situation where a surprise call can arrive with no procedural protection.
Centralised audit trail for written notices
The written notice requirement means bond calls now generate formal records. bondtrack's centralised portal captures and organises these notices against the relevant instrument, so you always have a complete, dated record of what was served and when.
Retrospective coverage from day one
The reforms apply to all on-foot contracts from September 2026 — meaning every Victorian instrument already loaded into bondtrack potentially falls under the new rules. Users who have their portfolio properly configured will be in a much stronger position to manage compliance from the first day the reforms take effect.
Visibility to push back with confidence
Because principals face real procedural consequences for calling bonds without proper written notice, contractors can challenge non-compliant calls. bondtrack gives them the visibility to know exactly what has been served, when, and against which instrument — the evidence base for any challenge.
The broader opportunity
These reforms signal that the legislative environment is moving toward greater protection for contractors providing bonds. The ability to issue statutory payment claims for bond returns is a compelling feature for Victorian contractors — particularly larger construction companies sitting on unreturned instruments from completed projects.
The September deadline is a natural forcing function. Contractors who want to take advantage of these new rights from day one need their bond portfolio properly organised and managed before the reforms commence.
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.
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