Due Date for Payment

The “Due Date for Payment” is a critical date in the Security of Payment process but is often misunderstood and non-compliance can lead to invalid applications being made.

In most states the Acts refer to the due date for payment as specified in the Contract and for either party this should be the primary guidance of how to calculate the due date of payment.

An example may be that the Contract states that the Claimant may put a claim for payment on the 23rd of June to be paid on the last day of the following month.  The due date for payment could then be viewed as being the 31st of July.

If the Contract is silent because it is not expressly written or there is a verbal agreement the Act(s) specify a default due date for payment in business days from the date the Respondent receives the Payment Claim (not the invoices attached to the Payment Claim which may be dated earlier). The default business day periods are:

NSW Contracts prior to 21 April 2014 – 10 business days
Contracts on and from 21 April 2014:
* Contracted to the Principal – 15 business days
* Contracted to another contractor on a non-residential project or carrying out of residential building work (within the meaning of the Home Building Act 1989) on a residential project where the client does not live in the residence and does not propose to live in the residence (the client in this instance could be the owner/lessor, superior contractor, company etc) – 30 business days
* Contracted to a person carrying out of residential building work (within the meaning of the Home Building Act 1989) on a residential project for a person who lives in the residence or proposes to live in the residence – 10 business days
QLD 10 business days (see note below)
ACT 10 business days
SA 15 business days
TAS 10 business days
20 business days where:
(i) the claim relates to a residential structure to be built on land; and
(ii) the respondent is the owner of the land; and
(iii) the respondent is not a building practitioner
VIC 10 business days

Note – Additionally the Queensland Building Services Authority Act  1991 (Section 67U refers) voids any provision under a “construction management trade contract or subcontract” (as defined by the QBSA Act) which has payment terms, of a progress payment, later than 25 business days  after the submission of a payment claim.

If you unsure of what due date for payment is applicable then it is advisable to seek legal/professional assistance prior to making an Adjudication Application.

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