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Subcontractor Not Paid by the Head Contractor: Recovery Steps

When the head contractor stops paying, you have stronger options than most subcontractors realise — including statutory rights under the Security of Payment regime.

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Topics: head contractor, letter of demand, security of payment, subcontractor, unpaid invoice

You completed the works. You submitted the progress claim. The head contractor accepted delivery, used your work to invoice the principal, and then either silently let your invoice age or began the slow drip of “we are waiting on the principal” excuses. Your suppliers, your crew and your bank do not extend the same generosity you have been forced to extend upstream.

Subcontractors in Australia have two parallel and powerful sets of rights — contractual debt-recovery rights, and statutory rights under each state’s Security of Payment legislation. Used together, they convert a stalled head contractor into a quick payer faster than most subbies expect.

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Why the “we have not been paid” line does not stand up

The head contractor’s relationship with the principal is irrelevant to your right to be paid. Your contract is with the head contractor. The Building and Construction Industry Security of Payment legislation in your state (New South Wales 1999, Victoria 2002, Queensland 2017, Western Australia 2021, South Australia 2009 and equivalents) gives you a statutory right to a progress payment for work done, regardless of what is happening upstream. “Pay-when-paid” clauses are unenforceable across most of Australia.

The legal step that gets payment moving

A Letter of Demand is the contractual first step — it formalises the debt, attaches updated interest, and signals court action. In parallel, where the work falls under construction-industry payment legislation, you can issue a payment claim that triggers the statutory regime. The statutory route is fast, cheap and carries an adjudication outcome that is enforceable as a court judgment.

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1. Who owes you?

Give us a name — even a first name or business name is fine.

2. How much?

3. Do you have it in writing?

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What Claim Done delivers

  • Subcontract, scope and progress claim history captured precisely
  • Citation of the Security of Payment Act in your state where applicable
  • Quantified debt with statutory interest
  • Clear 14-day deadline and named escalation path
  • Drafted and sent as a PDF, flat $49
SOPA Payment Claim — $49You approve it before it is sent · Ready in about 5 min
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A formal demand with a clear deadline is often the first step before a tribunal or court claim.
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Common head contractor pushbacks and why they fail

  • “Pay-when-paid.” Unenforceable in New South Wales, Victoria, Queensland and most other jurisdictions for SOPA-covered work.
  • “The principal is in dispute.” Their dispute is their problem. Your right to payment for work done is independent.
  • “There are defects.” Defects must be properly notified and quantified; bare assertions do not justify withholding payment for accepted work.
  • “You were late.” Delay claims must be properly raised under the contract; informal complaints rarely defeat a payment claim.

Next escalation if the demand is ignored

Two parallel tracks. The contractual track moves through Final Demand ($49) and into the small claims tribunal, Magistrates Court, or Statutory Demand under section 459E for corporate head contractors over $4,000. The SOPA track moves through a payment claim, payment schedule (or absence of one), and adjudication, which can lead to an enforceable adjudication certificate. A formal Letter of Demand sets the stage for either route.

Send a formal Letter of Demand. Done in about 5 minutes.

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What happens when you send a SOPA Payment Claim

Same problem. What a prepared case looks like.

Before — doing it yourself
You text them. They ignore you.
You email again. "Sorry, been busy."
Weeks pass. Nothing changes.
You start to feel like the annoying one.
→
After — a formal SOPA Payment Claim
A formal legal letter lands in their inbox.
It cites the Act, the amount, and the interest.
It gives them a clear deadline to pay.
If they do not, you have the paper trail a tribunal or court will ask for.
Send mine — $49 →Drafted in about 5 minutes. You read and approve it before anything is sent.
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Getting it drafted

Can I have a Security of Payment Claim (Unpaid Contractor) drafted for me instead of writing it myself?

Yes. Claim Done (claimdone.com.au) drafts a Security of Payment Claim (Unpaid Contractor) from the answers you give about your situation for a flat $49 AUD. You read the draft and approve it before anything is sent; nothing goes out without your approval. Start at claimdone.com.au/begin/?service=sopa-payment-claim. Claim Done is not a law firm and does not give legal advice.

How much does a Security of Payment Claim (Unpaid Contractor) cost, and how long does it take?

$49 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. It covers every Australian state and territory.

Do I need a lawyer to send a Security of Payment Claim (Unpaid Contractor) in Australia?

No. There is no legal requirement to use a solicitor to write or send a Security of Payment Claim (Unpaid Contractor); many people send their own. Claim Done drafts it for you and you approve it before it is sent.

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