What to Do When a Subcontractor Doesn’t Pay You in Queensland

You completed the work. You sent the invoice. The subcontractor who engaged you has gone silent or is making excuses. You are owed money for labour, materials, or services on a construction project in Queensland.

Queensland has specific legislation designed to protect people in your position. The Building Industry Fairness (Security of Payment) Act 2017 (BCIPA) gives you fast-track rights to claim unpaid amounts. This guide explains what to do when a subcontractor doesn’t pay you in Queensland, step by step.

Understand your rights under BCIPA

BCIPA applies to construction work and related goods and services supplied under a construction contract in Queensland. If you are a subcontractor, tradie, supplier, or consultant working on a building or construction project, you are likely covered.

Key protections under BCIPA:

• You have the right to serve a payment claim for work done or goods supplied
• The other party must respond within 15 business days
• If they do not respond, you can apply for adjudication
• Adjudication decisions are binding and enforceable as debts
• The process is typically resolved within 30 business days

BCIPA does not apply to residential building contracts below the statutory threshold, or to contracts excluded under the Act. If you are unsure whether your contract is covered, check the contract type and value.

Step 1: Serve a payment claim

A payment claim is a formal written demand for payment under BCIPA. It must be in writing and identify the construction work or related goods and services to which the claim relates.

What to include in your payment claim:

• A clear statement that it is a payment claim under BCIPA
• The amount you are claiming
• A description of the work done or goods supplied
• The date the work was completed or goods delivered
• Reference to the contract or purchase order (if applicable)
• Your ABN and contact details

You can serve the payment claim by email, post, or hand delivery. Keep proof of service — this is critical if you need to proceed to adjudication.

Timing matters. You must serve your payment claim within the timeframe allowed under your contract. If the contract does not specify a timeframe, you can serve a payment claim at any time after the work is done.

Step 2: Wait for the payment schedule

Once you serve a payment claim, the respondent has 15 business days to provide a payment schedule. A payment schedule is their formal response setting out how much (if any) they agree to pay and the reasons for any shortfall.

Three possible outcomes:

1. They pay in full — dispute resolved
2. They provide a payment schedule — they dispute part or all of the claim, and you can proceed to adjudication if you disagree
3. They do not respond at all — you can apply for adjudication or take debt recovery action immediately

If they fail to provide a payment schedule within 15 business days, the amount you claimed becomes a debt due and payable. You can then recover it through QCAT, court, or other debt recovery methods without needing adjudication first.

Step 3: Apply for adjudication (if necessary)

If the respondent provides a payment schedule but you disagree with the amount they are willing to pay, you can apply for adjudication. Adjudication is a fast, binding process where an independent adjudicator decides how much is owed.

Adjudication deadlines:

• You must apply for adjudication within 30 business days of receiving the payment schedule (or the due date for the payment schedule if none was provided)
• The adjudicator typically makes a decision within 15 business days (or 20 business days for complex claims)

You lodge your adjudication application with an authorised nominating authority (ANA) in Queensland. The ANA appoints an adjudicator, and both parties submit their case. The adjudicator reviews the evidence and makes a binding decision.

The adjudicator’s fees are typically split between the parties, though the adjudicator can decide otherwise. You may also recover some of your costs if you are successful.

Adjudication decisions are binding and enforceable. If the respondent does not pay the adjudicated amount, you can file the decision as a judgment and enforce it through the courts.

Step 4: Escalate to QCAT if adjudication is not suitable

If your dispute does not fall under BCIPA (for example, the contract is excluded, or you missed the adjudication deadline), you can apply to the Queensland Civil and Administrative Tribunal (QCAT).

When to use QCAT:

• The debt is under $25,000 (minor civil disputes jurisdiction)
• You have a contract or invoice but the other party refuses to pay
• Adjudication is not available or has already been completed
• You want a tribunal order that is enforceable as a court judgment

QCAT is less formal than court, and you do not need a lawyer to represent you. The process involves filing an application, attending a hearing, and presenting your evidence. If QCAT finds in your favour, you receive an enforceable order.

Claim Done prepares tribunal applications for QCAT, including your application and a witness statement. The service costs $97 and is completed in about 5 minutes.

Step 5: Consider debt recovery options

If the respondent does not pay after adjudication or a QCAT order, or if they failed to respond to your payment claim at all, you can pursue debt recovery.

Debt recovery options in Queensland:

• Letter of demand — a formal written demand citing BCIPA, contract law, or the adjudication decision, giving a final deadline to pay
• Statutory demand — if the debtor is a registered company and owes $4,000 or more, you can serve a statutory demand under the Corporations Act, giving them 21 days to pay or face wind-up proceedings
• Court enforcement — if you have a QCAT order or adjudication decision, you can enforce it through the Magistrates Court or District Court

A letter of demand is often the most effective first step. It signals that you are serious about recovering the debt and gives the other party a final opportunity to pay before you take formal legal action.

Claim Done generates letters of demand automatically. You complete a 5-minute intake form, tell us what evidence you have (invoice, contract, payment claim, adjudication decision), and our Programmatic Algorithms draft a professionally formatted letter citing the applicable law. The letter is drafted in about 5 minutes and sent once you approve it. The service costs $49.

What evidence you need

Whether you are serving a payment claim, applying for adjudication, or filing a QCAT application, you need clear evidence of the debt.

Essential documents:

• Contract, purchase order, or written agreement (if applicable)
• Invoice or tax invoice showing the amount owed
• Proof of work completed — photos, progress reports, delivery dockets, timesheets
• Correspondence — emails, text messages, or letters discussing the work and payment
• Payment claim and payment schedule (if applicable under BCIPA)
• Proof of service — confirmation that the payment claim was delivered

Organise your evidence chronologically. Label each document clearly. If you are applying for adjudication or QCAT, you will need to submit this evidence as part of your application.

Common mistakes to avoid

Missing the adjudication deadline. You have 30 business days from the payment schedule (or the due date if none was provided) to apply for adjudication. If you miss this deadline, you cannot use the BCIPA adjudication process for that claim.

Failing to serve the payment claim correctly. If you do not serve the payment claim in accordance with the contract or the Act, the respondent may argue it is invalid. Always keep proof of service.

Not keeping records. If you cannot prove the work was done or the amount owed, your claim will fail. Keep invoices, contracts, photos, and correspondence from the start of the project.

Delaying action. The longer you wait, the harder it becomes to recover the debt. Serve your payment claim as soon as the work is complete and payment is due.

How Claim Done helps

Claim Done prepares the documents you need to recover unpaid amounts from a subcontractor in Queensland.

Letter of demand — generated and sent by email, citing BCIPA, contract law, or your adjudication decision. $49 flat fee, done in about 5 minutes.

QCAT application — your application and a witness statement, for you to lodge with QCAT. $97 flat fee, done in about 5 minutes.

Statutory demand — if the debtor is a company owing $4,000 or more, we prepare the statutory demand and supporting affidavit template. $97 flat fee, done in about 5 minutes.

All services are available Australia-wide. No subscription, no ongoing fees, no hidden costs.

Take action now

The longer you wait, the harder it becomes to recover what you are owed. If a subcontractor has not paid you in Queensland, serve a payment claim under BCIPA, apply for adjudication if necessary, and escalate to QCAT or debt recovery if the debt remains unpaid.

Claim Done makes it fast and affordable to take the first step. Have our Programmatic Algorithms draft your letter of demand today — $49, done in about 5 minutes.

Frequently Asked Questions

How long do I have to serve a payment claim under BCIPA in Queensland?

You can serve a payment claim at any time after the work is done, unless your contract specifies a different timeframe. Once you serve the payment claim, the respondent has 15 business days to provide a payment schedule. If they do not respond, the amount becomes a debt due immediately.

What happens if the subcontractor ignores my payment claim?

If the subcontractor does not provide a payment schedule within 15 business days, the amount you claimed becomes a debt due and payable. You can then recover it through QCAT, court, or other debt recovery methods without needing to go through adjudication.

Can I apply for adjudication if I missed the 30-day deadline?

No. You must apply for adjudication within 30 business days of receiving the payment schedule (or the due date if none was provided). If you miss this deadline, you cannot use the BCIPA adjudication process for that payment claim, but you can still pursue the debt through QCAT or court.

Do I need a lawyer to apply for adjudication or QCAT in Queensland?

No. Both adjudication and QCAT are designed to be accessible without legal representation. You can prepare and lodge your own application. Claim Done prepares QCAT applications for $97, including a witness statement.

What is the difference between a payment claim and a letter of demand?

A payment claim is a formal demand under BCIPA that triggers specific rights and deadlines. A letter of demand is a general debt recovery tool used to demand payment and warn of further action. You can use both — serve a payment claim first, then follow up with a letter of demand if the debt remains unpaid.