Disputed Invoice? How to Resolve a Construction Payment Dispute
When a head contractor disputes your invoice, it can feel like you’re in an impossible position — you know the work was done, you know the amount is right, but the head contractor is telling you otherwise. Payment disputes are frustrating and damaging to your cash flow, but they’re also very common in construction — and Australia’s Security of Payment laws give you a clear, structured way to resolve them.
Why Invoices Get Disputed
Common reasons a head contractor disputes a construction invoice:
- Quantity disputes: They claim you didn’t do as much work as you’ve invoiced
- Quality disputes: They claim the work doesn’t meet the required standard
- Variation disputes: They dispute additional work items on your invoice
- Documentation disputes: They claim you’ve invoiced for items not listed in the contract
- Set-off claims: They claim the right to deduct amounts for alleged defects, LDs, or other issues
- Progress stage disputes: They say the stage isn’t complete enough to trigger the next payment milestone
The Right Way to Respond to a Disputed Invoice
If a head contractor disputes your invoice, there are two things you should do:
- Get the dispute in writing: Ask the head contractor to formally state in writing exactly what they’re disputing and why. This is important evidence.
- Serve a formal payment claim immediately: Don’t just wait and argue. Under the SOP Act, you can serve a payment claim at any time — forcing the dispute into a structured legal process where there are deadlines and consequences.
Once a payment claim is served, the head contractor must issue a formal payment schedule within 10–15 business days, identifying every item they dispute and their reasons. Vague or unsubstantiated disputes are harder to maintain in that structured environment.
Adjudication — A Fast, Independent Decision
If the head contractor disputes your payment claim (via a payment schedule), you can apply for adjudication. Adjudication is:
- Fast: Decisions are typically made within 10 business days of the application being accepted
- Independent: An expert adjudicator reviews the evidence from both sides and makes a binding decision
- Binding: The determination is enforceable as a court judgment
- Affordable: Much cheaper than court proceedings
In adjudication, you present your evidence — site records, photos, dockets, emails, timesheets — and the adjudicator decides what’s owed. Disputes that seemed insurmountable are often resolved clearly once both sides have to put their positions in writing.
How PayClaim Resolves Disputed Invoices
- Start your claim: Tell us about the dispute — what’s being disputed and why.
- We assess your claim: Our team reviews the dispute and advises on your likely success in adjudication.
- Payment claim prepared and served: We draft a compliant payment claim that properly presents your case.
- Adjudication managed: We handle the full adjudication process, presenting your evidence effectively.
Flat fee. No lawyers. Most disputed invoices resolved in 10–20 business days.
Dispute Doesn’t Mean You’re Wrong — Let Adjudication Decide
A head contractor’s disputed invoice is not an admission that you were wrong. It’s the beginning of a process you can win. Start your free claim with PayClaim today.