Payment Claim

This is the must have document to commence the Security of Payment process and the business day on which the Respondent receives a valid Payment Claim (not when it is dated or sent) is the date that starts the Adjudication process.

The Claimant must prepare in writing and serve a Payment Claim addressed to the Respondent, which includes the following information and wording:

  • Clearly identify or describe the construction work or related goods and services to which the progress payment relates;
  • State the amount of the progress payment which is due;
  • State on the Payment Claim words such as the following:

QLD – “This is a payment claim made under the “Building and Construction Industry Payments Act 2004 (Qld)” ..QLD Payment Claim Video..

NSW –

  • For contracts started prior to 21 April 2014 state “This is a payment claim made under the “Building and Construction Industry Security of Payment Act 1999 (NSW)”;
  • For contracts started on or after 21 April 2104
    • on residential works state “This is a payment claim made under the “Building and Construction Industry Security of Payment Act 1999 (NSW)”;
    • on non-residential works there is no requirement for any statement at all;
    • on the Principal the claim should be supported with a statement that is in the form prescribed by the regulations and (without limitation) that includes a declaration to the effect that all subcontractors, if any, have been paid all amounts that have become due and payable in relation to the construction work concerned. (Penalties apply for non-conformance)

ACT – “This is a payment claim made under the “Building and Construction Industry (Security of Payment) Act 2009 (ACT)”;

South Australia – “This is a payment claim made under the “Building and Construction Industry Security of Payment Act 2009 (SA)”;

Tasmania – “This is a payment claim made under the “Building and Construction Industry Security of Payment Act 2009 (TAS)”;

VIC – ‘This is a payment claim under the “Building and Construction Industry Security of Payment Act 2002 (VIC)”.

A Payment Claim can be your normal Tax Invoice or Statement as long as it includes the above information and should comply with the Contract requirements (if applicable). The contract may require you to attach statutory declarations, reports or any other deliverable to your progress claim so make sure you have read and understood your contract before sending a payment claim.

There is nothing preventing the Claimant from supplying other information to support the claim, such as:

  • Statements detailing the extent of the work completed and/or goods & services supplied;
  • Completion certificates;
  • Delivery dockets;
  • Photographs; and
  • Any other applicable contract documentation requirements.

It is  good practice to keep evidence of service such as facsimile receipt, express/registered post receipts and courier receipts etc so that you can demonstrate to the adjudicator when the Respondent received the document.  Note when the Respondent receives the Payment Claim is the trigger point to commencing action under the Act.

Reference Date

Be aware that the Payment Claim must be served on the Respondent from a Reference Date.  A Reference Date is a day(s) when you are entitled to claim under the contract.

In QLD, NSW, ACT, SA and Tasmania if the contract is silent on payment claim dates then the reference date is the last day of each month.

If you are using the Victorian legislation it is advisable to refer to the Victorian Government fact sheets to understand your entitlements to claim under that Act. To assist the reader we have extracted some words from Fact Sheet 3 in relation to when you can claim for payment under the Victorian Security of Payment Act as follows:

When can you make a payment claim?

A payment claim must be served within three months after the reference date, or within the period specified in the contract – whichever is the later.

A reference date is the date on which a claim may be made.  If the contract does not specify reference dates, the Act provides for them as follows:

  • Progress payments – 20 business days after the work was first carried out or goods and services were first provided.  Subsequent payment claims may then be made every 20 business days until the job is completed.
  • Single or one-off payments – The day after the work was last carried out or the goods or services were last supplied under the contract.
  • Final payments – The day after the end of any period under the contract for rectifying defects or omissions or the day after the final certificate is issued.  If neither of these applies, the reference date is the day after the work was last carried out or the goods or services were last supplied under the contract.

It is good practice to claim for works, goods and services that you are entitled to claim up until the reference date (not after).  For example if the reference date was the last day of the month and the date of a Payment Claim sent and received was the 17th of July the claimable entitlements are those up to the reference date of 30th June, not the 17th July.  July entitlements are applicable on and from the reference date of 31st July .

For relevant guidance notes on your Act please read the information provided under each Adjudication Scheme by clicking here.

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