You did the work, issued the invoice, and now the head contractor or principal has gone silent — or is feeding you excuses while the cash sits in their account. Australian subcontractors have stronger statutory protection than most realise, but only if the right steps are taken in the right order.
The two parallel paths
Subcontractors in construction (and a number of related industries) get a unique advantage: each state has a Security of Payment Act that creates a fast-track adjudication process bypassing courts and tribunals. In NSW, VIC, QLD, WA, SA, ACT, NT and TAS the regime is broadly similar:
- Issue a payment claim that complies with the relevant Act
- If the principal does not respond with a payment schedule in time, the full claim becomes payable as a debt
- If they do schedule less, you can lodge for adjudication — typically resolved in 10–25 business days
- Adjudicated amounts are enforceable as a court judgment
For non-construction subcontractor work — IT, professional services, manufacturing — the path is the standard Letter of Demand followed by tribunal or court action.
Why a Letter of Demand still matters first
Even where the Security of Payment regime applies, a properly drafted Letter of Demand often resolves the dispute faster and cheaper than adjudication. It:
- References the contract or purchase order
- Identifies the unpaid invoice(s) and the work delivered
- Sets a clear deadline (typically 14 days)
- Names the next step — Security of Payment claim, statutory demand, tribunal or court
- Establishes the documented record needed for any escalation
The Australian Consumer Law angle
Even subcontractor relationships sit under the Australian Consumer Law for amounts up to $100,000 (or for goods/services of a kind ordinarily acquired for personal use). Misleading conduct, unconscionable conduct and unfair contract terms claims are available where the head contractor has misled you about payment, retention, or scope.
The statutory demand option (companies only)
If the debtor is a company and owes more than $4,000, a Creditor’s Statutory Demand under the Corporations Act gives them 21 days to pay or face a presumption of insolvency. It is the single most powerful debt-recovery tool in Australia for company debts. Best used after the Letter of Demand is ignored.
What Claim Done’s Letter of Demand covers
- The contract or purchase order details
- The unpaid invoice(s) with dates and amounts
- Reference to relevant Security of Payment regime where applicable
- A 14-day deadline
- The escalation pathway — adjudication, statutory demand, tribunal or court
- Sent on professional letterhead to the head contractor or principal
The flat fee
Claim Done’s Letter of Demand is $79. The wizard asks about the contract, the work, the invoice and the response so far. Most subcontractor disputes resolve at the demand-letter stage. If they do not, the same dashboard escalates to Final Demand ($79), Statutory Demand ($79) or tribunal application ($79).
Next step
Send the Letter of Demand today. The longer an unpaid invoice sits, the harder it is to recover — particularly if the head contractor is heading for insolvency.