Getting Started

Who can make a payment claim under the Security of Payment Act in NSW?

Almost anyone who carries out construction work, or supplies related goods and services, under a construction contract in NSW. That includes head contractors, subcontractors, suppliers, consultants, and tradespeople. It doesn’t matter whether your contract is written, verbal, or just a series of texts and emails — if you did the work, you’re generally entitled to claim.

Do I qualify to use the Security of Payment Act?

You qualify if you did construction work (or supplied related goods or services) in NSW under a construction contract and you haven’t been paid what you’re owed. The work has to fit the Act’s definition of “construction work,” which is broad — building, civil works, fit-outs, electrical, plumbing, landscaping, and most trades are covered. The main exclusions are work for a homeowner who lives in the property (see the Homeowners section below) and a few specific industries like mining and some purely contractual drilling.

Does it matter that I don’t have a written contract?

No. The Act applies to written contracts, verbal contracts, and arrangements made through emails, texts, quotes, or purchase orders. As long as there was an agreement to do construction work for payment, you can use the Act. A written contract makes things easier to prove, but the absence of one doesn’t take away your rights.

How much does it cost to get help with a claim?

It depends on what you need — drafting a payment claim is far cheaper than running a full adjudication. Many claims are resolved simply by serving a correctly formatted payment claim, which costs very little. If it goes to adjudication, there are application and adjudicator fees on top (see the Adjudication section). Get in touch for a clear quote before you commit to anything.

Provide details of your claim here and we will review your claim, let you know where you stand, what the best way forward is and what fees are involved, if any.

Payment Claims

How do I format a payment claim under the Act?

A valid payment claim must do three things: identify the construction work it relates to, state the amount you’re claiming, and state that it is made under the *Building and Construction Industry Security of Payment Act 1999* (NSW). That last point is the one people most often miss — without the endorsement, your claim may not count as a Security of Payment claim. Keep the description of work clear enough that the other side knows exactly what they’re being asked to pay for.

What exactly do I need to write to “endorse” the claim?

You need words to the effect of: *“This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 (NSW).”* Put it clearly on the document — usually at the top or bottom of your invoice or claim. This endorsement is what turns an ordinary invoice into a statutory payment claim with all the rights and deadlines attached.

How long do I have to make a payment claim in NSW?

You generally have up to 12 months from the date you last carried out the work (or last supplied the goods or services). Your contract may allow a longer period, but it can’t shorten it. Don’t sit on it — the sooner you serve a valid claim, the sooner the clock starts on the other side’s obligation to respond.

When can I serve a payment claim?

You can serve a payment claim on or after each “reference date” in your contract. A reference date is the point at which you become entitled to a progress payment — often the end of each month, or a milestone date set out in your contract. If the contract is silent, the reference date is the last day of each month in which you did work. You can generally serve one payment claim per reference date.

Who do I serve the payment claim on?

Serve it on the party you contracted with — the person or company that owes you the money. If you’re a subcontractor, that’s usually the head contractor, not the property owner. Serve it the way your contract allows (email, post, or in person), and keep proof of when and how you sent it, because the response deadlines run from the date they receive it.

Payment Schedules

What is a payment schedule?

A payment schedule is the other side’s formal written response to your payment claim. It must state the amount they propose to pay (the “scheduled amount”) and, if that’s less than you claimed, give their reasons for paying less. It’s their one chance to put their position on the record — if they don’t raise a reason in the schedule, they generally can’t raise it later in adjudication.

What should I do if I receive a payment schedule?

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Read it carefully and check the scheduled amount against what you claimed. If they’ve offered to pay you in full, make sure they actually pay by the due date. If they’ve scheduled less than you claimed — or nothing — you can apply for adjudication, but you must move quickly: you generally have only 10 business days from receiving the payment schedule to lodge an adjudication application. Don’t let that window close.

Submit a copy of the payment claim that you have received here and we will review the payment claim, let you know where you stand, what the best way forward is and what fees are involved, if any.

What if the other side doesn’t respond to my claim at all?

If they don’t provide a payment schedule within 10 business days (or any shorter time your contract sets), they lose the right to dispute the amount — they become liable to pay the full claimed amount on the due date. From there you have two options: recover the amount as a debt in court, or apply for adjudication. If you go the adjudication route without a payment schedule, you first have to give them a warning notice and a final 5 business days to provide one.

How long does the other side have to provide a payment schedule?

They have 10 business days from when they receive your payment claim, unless your contract specifies a shorter period. If they miss that deadline, they’re on the hook for the full amount you claimed. This is one of the strongest features of the Act — silence works in your favour, not theirs.

Adjudication

What is adjudication?

Adjudication is a fast, low-cost process for getting an independent adjudicator to decide how much you’re owed. You lodge an application, the other side gets a short window to respond, and the adjudicator makes a binding determination — usually within a few weeks, not the months or years a court case takes. If they determine an amount in your favour, it’s enforceable like a debt.

How much does adjudication cost?

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There are two main costs: the cost to prepare the adjudication application for lodgement with an authorised nomination authority, and the adjudicator’s own fees, which are based on the time they spend and the size of the claim. The adjudicator decides who ultimately pays their fees — often it’s split, or the losing party pays. For a straightforward claim the total cost is modest compared with court, and it’s usually recoverable if you succeed. Contact us for an estimate based on your claim size.

Our fee for preparation of the adjudication application depends on the response if any from the debtor. If the debtor is silent the fee will be towards the lower end of the scale, or, if the debtor responds and raises complex reasons for withholding payment then the fee will be towards the higher end of the scale.

If you need help with an adjudication application or response provide all the details here and we can let you know where you stand, what the best way forward is and what fees are involved, if any.

How long does adjudication take?

Most adjudications are resolved within a few weeks of lodging the application. Once you apply, the other side has a short window (usually 5 business days) to respond, and the adjudicator must generally make their determination within 10 business days after that. The exact timing depends on the complexity of the claim and whether extensions are agreed, but it’s designed to be much faster than litigation.

What are the deadlines to apply for adjudication?

The deadline depends on what happened with the payment schedule. If you received a schedule for less than you claimed, you generally have 10 business days from receiving it. If you received a schedule but weren’t paid by the due date, you generally have 20 business days after the due date. If you received no schedule and weren’t paid, you must first serve a warning notice, give 5 business days for a late schedule, and then apply within 10 business days. These windows are strict — missing one can mean starting over.

Is the adjudicator’s decision final?

The adjudicator’s determination is binding and enforceable, and you can take it to court to enter it as a judgment if you’re not paid. It’s not a final ruling on every legal right — either party can still pursue the dispute through the courts later — but in practice most determinations stand, and the money has to be paid in the meantime. The Act is built around “pay now, argue later.”

Homeowners

Can I make a payment claim against a residential homeowner?

Yes you can. The Security of Payment Act does apply where you did residential building work for a homeowner who lives in, or intends to live in, the property. That “owner-occupier” differential means you must serve a supporting statement with payment claims for adjudication against a typical mum-and-dad homeowner building or renovating their own home.

Are there any other residential jobs the Act also covers?

Yes. As well as the Act applying to owner-occupiers if the other party is a developer, an investor building to sell or rent, a builder, or a company — rather than someone who will live in the home — the Act generally does apply too, and you can use payment claims and adjudication. The key question is who you contracted with and whether they intend to live there as to the format of the payment claim.

I’m a subcontractor on a home renovation — am I excluded?

Not necessarily. The exclusion is not about the relationship with the resident owner, so it’s the head contractor’s contract directly with the homeowner that is different to a subcontractor making a claim. As a subcontractor, your contract is usually with the builder or head contractor — not the homeowner — so the Act generally still applies to your claim against them. If you’re unsure who you contracted with, get advice before assuming you’re formatting your payment claim correctly.

*This page is general information about the Building and Construction Industry Security of Payment Act 1999 (NSW) and isn’t legal advice for your specific situation. Deadlines under the Act are strict and counted in business days — if you think you have a claim, get advice early.*