20-Point Cash Flow & Compliance Guide
NSW Security of Payment (SOPA) Toolkit for Accountants
This interactive checklist helps you assess, diagnose and guide construction clients on SOPA-related cash flow issues. Tick items, record notes, and see your progress update live.
Note: Results and recommendations appear when you check 10+ items (currently showing for demo purposes).
Need implementation support? See details at the end.
Note: Results and recommendations appear when you check 10+ items (currently showing for demo purposes).
Need implementation support? See details at the end.
Completion Progress
0/20 points completed
1 · Client Assessment Checklist (5 points)
| ✓ | Assessment Point | Your Notes |
|---|---|---|
| SOPA eligibility – does contract fall under NSW Act (commercial/residential split)? | ||
| Payment terms within statutory limits (15 BD head contractors / 20 BD subcontractors)? | ||
| Cash flow health – % invoices >30 days overdue, retention handling, working capital ratio. | ||
| Contract documentation – clear payment schedule, signed variations, dispute clauses. | ||
| Risk profile – prior disputes, credit score, seasonality pressure. |
2 · Red Flag Identification (5 points)
| ✓ | Red Flag | Risk Level | Action / Evidence Required |
|---|---|---|---|
| Vague or missing work-scope descriptions. | MEDIUM | ||
| "Paid-when-paid" or excessive upfront payments. | HIGH | ||
| Unlicensed / uninsured subcontractors engaged. | HIGH | ||
| Principal with history of delayed payments / adjudications. | CRITICAL | ||
| Significant unexplained supplier-payment fluctuations. | MEDIUM |
3 · Client Conversation Scripts (5 points)
Use (or adapt) these professionally framed prompts.
Initial Cash Flow Discussion
"Many builders face 60-day payment lags. Are you experiencing similar delays on current projects?"
Explaining SOPA Rights
"As a NSW contractor you can issue a compliant payment claim and enforce payment within strict timeframes. Do your current invoices meet the Act's requirements?"
Optimising Payment Terms
"Let's review your contracts – are they structured for the 15/20-day statutory windows?"
Preventing Disputes Early
"Disputes usually start with unclear variations. Shall we audit your variation registers before month-end?"
Introducing Specialist Support
"We partner with a contracts-administration team that handles adjudication and SOPA paperwork – interested in meeting them?"
4 · Implementation Framework (3 points)
| ✓ | Process Step | Key Actions |
|---|---|---|
| Monthly Payment-Claim Cycle | Template issue, service proof, 10 BD schedule tracking. | |
| Contract Review Protocol | Clause gap analysis, variation approval workflow, retention triggers. | |
| Cash Flow Monitoring System | Rolling 13-week forecast, milestone burn-rate vs receipts. |
5 · Escalation Guidelines (2 points)
| ✓ | Escalation Trigger | Specialist Action |
|---|---|---|
| Payment schedule dispute or no schedule issued. | Prepare s17(2) notice & adjudication application. | |
| Complex multi-party project over $250k. | Engage contracts administrator for end-to-end SOPA management. |