Subcontractor Didn’t Pay You in Queensland: Your Step-by-Step Recovery Plan

You finished the job. The subcontractor who hired you has your invoice. Weeks pass. No payment. No explanation.

In Queensland, you have specific statutory rights under the Building Industry Fairness (Security of Payment) Act 2017 (the BIF Act) that give you a faster path to payment than standard debt recovery. This guide walks you through exactly what to do when a subcontractor doesn’t pay you — from your first payment claim through to QCAT if necessary.

Understanding Your Rights Under the BIF Act

The BIF Act applies to construction work in Queensland: building, fitting out, altering, repairing, restoring, demolishing, and maintaining structures. If you’re a tradie, subcontractor, or supplier working on construction projects, you’re typically covered.

Key protections:

• Right to progress payments at intervals stated in your contract (or monthly if not specified)
• Statutory payment claim process with strict timeframes
• Adjudication as a fast dispute resolution mechanism (typically 10-15 business days)
• Security of payment provisions that prevent payment being withheld without valid reason
• Prohibition on “pay when paid” clauses in most circumstances

The Act creates a statutory framework that overrides many common contract terms designed to delay or avoid payment.

Step 1: Issue a BIF Act Payment Claim

Before you send a demand letter or go to QCAT, you must first issue a valid payment claim under the BIF Act. This is a statutory prerequisite.

Requirements for a valid payment claim:

• Must be in writing
• Must identify the construction work or related goods and services
• Must state the amount claimed
• Must request payment of the amount claimed
• Must be given within the time in the contract or, if later, six months after the work was completed

You can use your tax invoice as a payment claim if it meets these requirements.

Once you serve your payment claim, the respondent has 15 business days to serve a payment schedule. A payment schedule must state the amount they propose to pay (which can be zero) and the reasons for withholding any amount.

If they don’t serve a payment schedule within 15 business days, they become liable to pay the amount claimed, and their ability to dispute it later is limited.

Step 2: Send a Letter of Demand

If the 15-business-day period expires and you still haven’t been paid, send a formal letter of demand.

Your letter should:

• Reference your BIF Act payment claim and the date it was served
• State the amount owing
• Note that no payment schedule was provided (if applicable)
• Demand payment within 7 days
• State your intention to commence QCAT proceedings if payment is not received

The letter establishes a clear paper trail and demonstrates you’ve taken reasonable steps to recover the debt before commencing tribunal proceedings. QCAT expects parties to attempt resolution before filing.

Step 3: Consider Adjudication (If Still Within Timeframes)

If the respondent served a payment schedule but you dispute the amount they’re offering to pay, you can apply for adjudication under the BIF Act.

Adjudication timeframes:

• You must apply within 30 business days after the payment schedule was given
• The adjudicator typically makes a decision within 10 business days
• The respondent must pay the adjudicated amount within 5 business days of the decision

It’s most cost-effective for claims over $15,000.

When to skip adjudication:

• The respondent didn’t serve a payment schedule (you can go straight to debt recovery)
• Your claim is under $10,000-$15,000 (QCAT is cheaper and simpler)
• You’re outside the window to apply for adjudication (30 business days after the payment schedule was given)

Step 4: File in QCAT

If the letter of demand doesn’t work and adjudication isn’t suitable, your next step is the Queensland Civil and Administrative Tribunal. QCAT handles minor civil disputes up to $25,000.

QCAT process:

1. File an Application — complete the minor civil dispute form online or in person at any QCAT registry
2. Pay the filing fee — Fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file.
3. Serve the application — you arrange service on the other party
4. Compulsory conference — QCAT schedules a conference to attempt settlement
5. Hearing — if settlement fails, a tribunal member hears evidence and makes a binding decision

Documents you’ll need:

• Your BIF Act payment claim and proof of service
• Evidence that no payment schedule was served (statutory declaration, Australia Post tracking)
• Your letter of demand and proof of service
• Contract or agreement (if written)
• Invoices, quotes, emails, text messages
• Photos of completed work

QCAT is designed to be accessible without a lawyer. The tribunal member will guide the process, and the rules of evidence are relaxed.

What If the Amount Is Over $25,000?

If your claim exceeds $25,000, you cannot use QCAT. Your options are:

• Adjudication under the BIF Act (if still within timeframes and a payment schedule was served)
• Queensland Magistrates Court (for claims up to $150,000)
• District Court (for claims over $150,000)

Court proceedings are more formal and slower.

Common Defences and How to Counter Them

“The work was defective” Provide photos, engineer reports, or evidence the work met the contract specification. Under the BIF Act, defects are not typically a valid reason to withhold the entire payment — only the reasonable cost to rectify can be deducted.

“We haven’t been paid by the head contractor” “Pay when paid” clauses are generally unenforceable under the BIF Act. The respondent’s payment obligation to you is independent of whether they’ve been paid.

“You didn’t follow the contract payment claim process” The BIF Act overrides most contractual payment claim requirements. As long as your claim meets the statutory requirements, it’s valid.

“The invoice wasn’t a valid payment claim” If your invoice identified the work, stated the amount, and requested payment, it’s valid.

How Claim Done Helps Queensland Subcontractors

Claim Done drafts your Security of Payment Claim under the Building Industry Fairness (Security of Payment) Act 2017 (Qld): it identifies the work, states the amount and requests payment. If your contract allows email service, it can be sent to the respondent once you approve it.

You tell us about the contract, the work, your invoices and any correspondence. Claim Done’s Programmatic Algorithms work from your answers and draft the claim.

What Claim Done does not do: Claim Done does not provide legal advice, does not represent you in QCAT, and does not lodge adjudication applications.

Final Checklist: Subcontractor Didn’t Pay You in Queensland

• [ ] Issue a valid BIF Act payment claim (or confirm your invoice meets the requirements)
• [ ] Wait 15 business days for a payment schedule
• [ ] If no payment schedule is served, send a letter of demand
• [ ] If the letter of demand fails, file in QCAT (claims up to $25,000)
• [ ] Gather all evidence: payment claim, invoices, contract, correspondence, photos
• [ ] Attend the compulsory conference prepared to negotiate
• [ ] If settlement fails, present your case clearly at the hearing

The key to success is acting quickly and following the statutory timeframes. The BIF Act gives Queensland subcontractors powerful rights, but only if you use them correctly and within the prescribed periods.

Get Your Payment Claim Drafted Today

If a subcontractor hasn’t paid you in Queensland, Claim Done drafts a Security of Payment Claim under the Queensland Act, ready to give to the other party. Flat fee, no subscription. Start your payment claim now.

Frequently Asked Questions

Can I go straight to QCAT without sending a letter of demand first?

Yes, legally you can file in QCAT without a prior demand letter. However, QCAT expects parties to attempt resolution before commencing proceedings, and a letter of demand demonstrates you’ve taken reasonable steps. It also gives the other party a final opportunity to pay before you incur filing fees.

What if the subcontractor who owes me money is based in another state?

The BIF Act applies to construction work carried out in Queensland, regardless of where the parties are based. If the work was done in Queensland, you can use the BIF Act and file in QCAT. Service of documents interstate is allowed, though you may need to arrange it yourself rather than relying on QCAT’s standard service.

How long does a QCAT minor civil dispute take from filing to decision?

Waiting times for the compulsory conference and hearing depend on QCAT’s workload. Simple debt recovery matters are often faster than complex contractual disputes.

Can I claim interest on the unpaid amount in Queensland?

Yes. Under Queensland civil proceedings legislation, you can typically claim interest on a debt at the rate set by regulation (currently around 6% per annum). QCAT can award interest from the date the debt became due until the date of judgment. Make sure to include your interest claim in your QCAT application.

What happens if I win in QCAT but the respondent still doesn't pay?

A QCAT decision is a legally binding order. If the respondent doesn’t pay, you can enforce the order through the Queensland Magistrates Court by applying for a warrant to seize property, garnishee wages, or register a charge over land. Enforcement is a separate process that may require additional fees.