When a Head Contractor Stops Paying — What You Can Do
You’ve submitted your invoice. Maybe you’ve sent reminders. Maybe you’ve called and left messages. And now the head contractor has gone quiet, made excuses, or flat-out told you they won’t pay. This is one of the most stressful situations a subcontractor can face — but it’s also one you have real legal power to address.
Australia’s Security of Payment laws exist precisely for this situation. If a head contractor isn’t paying you, here’s what you need to know and what you can do right now.
Why Head Contractors Don’t Pay
There are many reasons a head contractor might stop or delay payment to subcontractors:
- Their own cash flow is under pressure — waiting on payment from the developer or principal
- They’re disputing the scope, quality, or quantum of your work
- They’re using your unpaid invoice as leverage to pressure you on something else
- They’re in financial difficulty and prioritising other creditors
- They simply haven’t prioritised your invoice in their payment run
Whatever the reason, their cash flow problems are not your legal problem. You performed the work. You’re entitled to be paid.
Your Legal Rights When a Head Contractor Doesn’t Pay
Under Security of Payment legislation in every Australian state and territory, you have the right to:
- Serve a formal payment claim — a specific legal document that triggers strict obligations on the head contractor
- Require the head contractor to issue a payment schedule within 10–15 business days (depending on your state), either paying your claim or formally disputing it in writing
- If no payment schedule is issued, the full claimed amount becomes a debt owed to you under the Act
- If the claim is disputed, take it to adjudication — an independent, legally binding decision typically made within 10 business days
The head contractor cannot simply ignore a properly served payment claim without serious legal consequences.
What Happens If They Still Don’t Pay After Adjudication?
If an adjudicator rules in your favour and the head contractor still refuses to pay, you can:
- Register the adjudication determination as a court judgment
- Pursue enforcement action — including garnishing bank accounts and seizing assets
- In some states, report the non-payment to the relevant licensing authority (which can affect the head contractor’s licence)
How PayClaim Gets You Paid
- Start your claim online: Tell us about your unpaid invoice and the head contractor. Takes five minutes.
- We prepare a payment claim: A legally compliant payment claim under your state’s SOP Act is drafted and ready to serve.
- We serve it correctly: Proper service is everything in SOP law — we make sure it’s done right.
- We manage adjudication: If the head contractor disputes or ignores the claim, we run the adjudication process for you.
Flat fee. No lawyers. Most subcontractors get paid within 10–20 business days of starting a claim.
Don’t Wait — Act Now
Time limits apply to Security of Payment claims. The sooner you act, the stronger your legal position. If a head contractor isn’t paying you, start your claim with PayClaim today.