Whether you’re a contractor, subcontractor, or sub-subcontractor working on Australian construction projects, you have significant legal rights when it comes to getting paid. Understanding these rights — and knowing how to enforce them — is essential to running a successful contracting business.
Every Australian state and territory has Security of Payment legislation that gives construction contractors the right to:
These rights are statutory — they exist by law and cannot be removed by contract terms.
In construction, payment flows down a chain:
Security of Payment laws give contractors at every level of this chain direct rights to claim against the party immediately above them. A subcontractor can claim against a head contractor. A sub-subcontractor can claim against the subcontractor above them. The right is between the two contracting parties — not against the developer or principal directly.
You have a statutory right to progress payments at each reference date under your contract — regardless of whether the head contractor has been paid by the developer. “Pay when paid” clauses are generally unenforceable in most Australian states.
When you serve a payment claim, the responding party must issue a payment schedule within the required timeframe (10–15 business days in most states). Failure to do so means the full claimed amount is legally owed.
If your payment claim is disputed, you can apply for adjudication — a fast, binding dispute resolution process. Adjudication is much faster and cheaper than court.
In some states, if a payment obligation isn’t met after adjudication, you may have the right to suspend work. This is a powerful remedy — no site, no progress, no pressure on you to continue working for free.
PayClaim makes exercising your payment rights simple and affordable:
Flat fee. No lawyers. Your rights, enforced efficiently.
Australian construction payment laws are some of the strongest contractor protections in the world. But they only work if you use them. Start your free claim with PayClaim today.