Contractor Not Paid: How to Make a Security of Payment Claim in Australia

You finished the job. You sent the invoice. The builder or principal hasn’t paid. Calls and follow-up emails go nowhere.

For contractors, subcontractors and suppliers working on construction projects across Australia, a statutory payment claim under your state’s Security of Payment Act is a formal, legally backed step that requires the other side to respond in writing within the timeframe set by the Act.

What Is a Security of Payment Claim?

A security of payment claim is a formal written demand made under your state or territory’s Security of Payment legislation. Legislation of this kind exists in New South Wales, Victoria, Queensland, South Australia, Western Australia, Tasmania, the Australian Capital Territory and the Northern Territory.

The Acts were introduced to address cash flow problems in the construction industry. They give contractors, subcontractors and suppliers a statutory process to claim payment for work done or materials supplied — even where there is a dispute about the quality or scope of the work.

The claim is not a court document. It is a notice served on the person or company who engaged you (the “respondent”). Once it is served, the respondent has a limited time, which depends on your state and the Act that applies, to issue a payment schedule stating how much they will pay and why they are withholding any amount.

Under the Acts, if the respondent does not issue a payment schedule in time, they may lose the right to dispute the claim. The claimant may then be able to recover the claimed amount as a debt, or apply for adjudication to have it determined by an independent adjudicator.

Who Can Make a Security of Payment Claim?

A statutory payment claim may be available if:

• You carried out construction work or supplied related goods or services under a construction contract in Australia
• The contract is not excluded by your state’s Act (some states exclude certain residential building contracts, while commercial, industrial and infrastructure projects are commonly covered)
• You have not been paid the amount you say you are owed
• You are within the time limits set by the Act and your contract

“Construction work” is defined broadly. It includes building, fitting out, demolition, excavation, electrical, plumbing, air conditioning, landscaping, painting, concreting, steelwork — and supplying materials for any of those purposes.

The Acts can apply to contracts between head contractors and principals, subcontractors and head contractors, and sub-subcontractors further down the chain.

Time Limits: When a Claim Must Be Served

Each state’s Act sets time limits. Missing a time limit can mean losing the right to make a statutory claim for that payment period.

The time limit depends on what your contract says about payment claims. If your contract allows you to make a payment claim at set intervals, such as monthly, your statutory claim generally needs to be served within the relevant period. If your contract says nothing about when you can claim, the Act may set a default period.

You can generally make more than one payment claim during a project, but you cannot claim the same work or materials twice. Each claim is for a distinct period or stage of work.

Because the time limits are strict and vary by state and contract, check them early once an invoice goes unpaid.

What a Security of Payment Claim Must Contain

Your state’s Act sets out what the claim must include. The requirements vary between states, but a claim generally needs to:

• Identify the construction contract (by reference to a contract number, purchase order, or the parties and project)
• Describe the work done or goods supplied during the relevant period
• State the amount being claimed
• State the due date for payment under the contract, or if there is none, the date payment is being claimed by
• In some states, include a statement that the claim is made under the Security of Payment Act

The claim does not need to be called a “payment claim” in the heading, but it should be clear that you are claiming a payment and relying on the Act. An ordinary invoice may qualify as a payment claim if it meets the statutory requirements, but many people prefer to prepare a document that explicitly refers to the Act and contains all the required elements.

It is helpful to attach or refer to supporting documents: timesheets, delivery dockets, photos, your quote or contract, and any variation approvals.

What Happens After You Serve the Claim?

Once a payment claim is served on the respondent, the statutory timeframe begins.

The respondent has a limited period — the payment schedule period — to either pay in full or issue a payment schedule in writing. The payment schedule must state how much they propose to pay (which may be less than the claim, or nothing) and the reasons for withholding any amount.

If they do not issue a payment schedule within the time allowed, the Act may prevent them from later disputing the amount claimed. The claimant may then be able to sue for the claimed amount as a debt due, or apply for adjudication.

If they do issue a payment schedule offering less than the claim, the claimant can accept the scheduled amount, negotiate, or apply for adjudication under the Act. Adjudication is a fast dispute resolution process in which an independent adjudicator decides how much is payable. Under the Acts, the adjudicator’s decision generally has to be paid, even if the respondent later challenges it in court or arbitration.

The adjudication process has its own strict time limits and procedural requirements. An adjudication application generally has to be lodged within a set time after the payment schedule is received (or after the payment schedule period expires if none was issued), and the exact time depends on your state.

Which State’s Act Applies?

The Security of Payment Act that applies is generally the Act of the state or territory where the construction work was carried out — not where you or the principal are based.

Each state and territory has its own Act with different rules:

• New South Wales: Building and Construction Industry Security of Payment Act 1999
• Victoria: Building and Construction Industry Security of Payment Act 2002
• Queensland: Building Industry Fairness (Security of Payment) Act 2017
• South Australia: Building and Construction Industry Security of Payment Act 2009
• Western Australia: Construction Contracts Act 2004
• Tasmania: Building and Construction Industry (Security of Payment) Act 2009
• Australian Capital Territory: Building and Construction Industry (Security of Payment) Act 2009
• Northern Territory: Construction Contracts (Security of Payments) Act 2004

The Northern Territory Act works differently from the others: it does not use a payment claim and payment schedule process in the same way. Instead, it allows a party to apply directly for adjudication if a payment dispute arises. Check the Act itself for the detail.

What If the Respondent Still Doesn’t Pay?

If a claimant succeeds at adjudication and the respondent still does not pay the adjudicated amount, the claimant may be able to enforce the adjudication determination as if it were a court judgment. Depending on the state, this can involve filing the determination in the relevant court or tribunal, and then using the court’s enforcement powers, which can include garnishee orders, writs, or bankruptcy or winding-up proceedings.

The Security of Payment Acts are designed to keep cash flowing. Under the Acts, an adjudicated amount generally has to be paid even if the respondent later starts court or arbitration proceedings arguing the work was defective or the claim was wrong. Disputes about the quality of the work or the final account are generally dealt with separately.

Steps to Make Your Claim

1. Check your contract and the time limit. Work out when you are allowed to make a payment claim under your contract, and whether you are still within that period.
2. Gather your records. Collect your timesheets, invoices, delivery dockets, photos, emails approving variations, and a copy of your contract or purchase order.
3. Calculate the amount. Add up what you are owed for this claim period: labour, materials, plant hire, any approved variations. Deduct any amount already paid for this period.
4. Draft the claim. Draft your statutory payment claim following your state’s Act requirements.
5. Serve the claim. Serve the claim on the respondent by a method your contract and the Act allow (for example, email or hand delivery). Keep proof of service: a read receipt, a photo, or a witness statement.
6. Wait for the response. The respondent has a limited time, set by your state’s Act, to issue a payment schedule or pay in full.
7. If no payment schedule is issued, consider recovering the debt. Options include suing for the amount as a debt, or applying for adjudication.
8. If a payment schedule is issued offering less, decide your next step. Options include accepting the scheduled amount, negotiating, or applying for adjudication within the time allowed.

How ClaimDone Helps

ClaimDone’s Security of Payment Claim service drafts your statutory payment claim from your answers to plain questions.

You tell us:

• Your details and the respondent’s details
• The construction contract: the project, the date, any contract or purchase order number
• The work you did or the materials you supplied during the claim period
• The amount owing and the payment date under your contract (or the date you are claiming payment by)
• Your state or territory
• Any supporting documents you want to attach or refer to

ClaimDone drafts your payment claim in the format your state’s Act requires, referring to the relevant legislation. You receive the document as a PDF. You review it, approve it, and then serve it on the respondent yourself — by email, by hand, by post or by whatever method your contract or the Act allows.

The service costs $49. You receive the completed claim once you have approved it.

We do not lodge the claim for you, and we do not represent you in any adjudication that follows. The claim is a document you serve yourself. If the respondent issues a payment schedule and you want to proceed to adjudication, you will need to lodge that application separately (adjudication applications are generally made through your state’s authorised nominating authority).

The $49 fee is fixed. No hourly rates, no follow-up invoices, no subscriptions. You pay once, you get the document. ClaimDone is not a law firm and this page is general information, not legal advice.

Get Your Payment Claim Ready

You did the work and you say you are owed the money. A statutory payment claim under your state’s Security of Payment Act is a formal path to payment.

ClaimDone drafts your payment claim for $49. You answer plain questions, approve the document, and serve it on the principal or head contractor yourself. The claim is formatted for your state and aims to contain the elements the Act requires.

Start your Security of Payment Claim now at claimdone.com.au/begin/?service=sopa-payment-claim.

Frequently Asked Questions

Can I make a security of payment claim if I only did a small job?

The Security of Payment Acts can apply to construction contracts of any size, from a small repair to a very large project. If you did construction work or supplied materials under a contract and have not been paid, a statutory payment claim may be available — provided your contract is not excluded by your state’s Act.

What happens if I serve my payment claim late?

If a claim is served outside the time limit set by your contract or the Act, it may not be a valid statutory payment claim. The respondent can argue it is out of time, and you may lose the protections the Act gives you. You may still be able to pursue the debt under ordinary contract law, but the fast adjudication process may not be available.

Do I need a lawyer to make a security of payment claim?

You are not required to have a lawyer. You can prepare and serve a payment claim yourself, or use a service like ClaimDone to draft it for you. If the matter proceeds to adjudication and becomes complex, some people choose to get advice at that stage.

Can I claim interest or legal costs in my payment claim?

Interest may be claimable if your contract entitles you to it. Legal costs and the cost of preparing the payment claim are generally not part of the claim itself — those are dealt with separately, either in adjudication or in any later court proceedings. The position varies by state, so check the Act that applies.

What if the principal says the work is defective?

The Security of Payment Acts are designed so that a payment claim can be made even if there is a dispute about the quality of the work. The principal can raise defects or set-offs in their payment schedule, and the adjudicator will consider them. The focus of the Acts is on cash flow, and disputes about defects or the final account are generally resolved separately, after payment.