How to Write a Payment Claim Under the Security of Payment Act (Australia)

If a builder, head contractor, or developer owes you money for work completed, the Security of Payment Act in your state is your fastest legal tool to force them to respond. But a poorly drafted payment claim can be rejected outright—wasting weeks and leaving you unpaid.

This guide walks you through what every payment claim must contain, where your claim fails, and how to get it right the first time.

What is a Payment Claim Under the Security of Payment Act?

A payment claim is a formal written demand for payment under state-based Security of Payment legislation. It’s not an invoice. It’s a legal notice that triggers strict timelines for the person who owes you money (the “respondent”) to either pay or issue a formal payment schedule explaining why they won’t pay in full.

Every Australian state and territory has its own Security of Payment Act. The core principle is the same everywhere: you lodge a claim, the respondent has a tight statutory deadline to respond (typically 10 business days), and if they don’t respond properly, you can apply for adjudication—a binding decision from an independent adjudicator.

The Acts apply to construction contracts. This includes work by tradies, subcontractors, suppliers, and labour-hire providers on building projects.

Who can lodge a payment claim?

You can lodge a payment claim if:

• You have a contract (written or oral) to carry out construction work or supply materials for a construction project.
• You have performed work or supplied materials under that contract.
• You have not been paid in full for that work or supply.
• The person who owes you money is a party to the contract (e.g., the head contractor, developer, builder, or another subcontractor who engaged you directly).

You do not need to be a company. Sole traders, partnerships, and incorporated associations can all lodge claims.

How long do I have to lodge a payment claim?

The deadline depends on your state and the terms of your contract. Generally, you must lodge a claim within 12 months of the date you became entitled to the payment. Some states allow longer, and some contracts may shorten this window.

State/Territory	Statutory Timeframe	Key Reference
NSW	12 months from entitlement date	Section 13, Building and Construction Industry Security of Payment Act 1999
QLD	12 months from entitlement date	Section 37, Building Industry Fairness (Security of Payment) Act 2017
VIC	12 months from entitlement date	Section 13, Building and Construction Industry Security of Payment Act 2002
WA	12 months from entitlement date	Section 20, Construction Contracts Act 2004
SA	12 months from entitlement date	Section 13, Building and Construction Industry Security of Payment Act 2009
TAS	12 months from entitlement date	Section 13, Building and Construction Industry Security of Payment Act 2009
NT	12 months from entitlement date	Section 20, Construction Contracts (Security of Payments) Act 2004
ACT	12 months from entitlement date	Section 13, Building and Construction Industry (Security of Payment) Act 2009

Lodge your claim early. The closer you get to 12 months, the higher the risk of losing your right to claim entirely.

What must a valid payment claim contain?

This is where most claims fail. A payment claim must include all of the following:

1. Identification of the claimant. Your full legal name, business name (if applicable), address, and contact details.
2. Identification of the respondent. The full name and address of the person you’re claiming against (the builder, head contractor, or developer).
3. Identification of the construction contract. The date the contract was made, the parties to it, and a brief description of the work or supply. If the contract is in writing, you may attach a copy.
4. The date on which you became entitled to the payment. This is typically the date you completed the work or delivered materials, or the date you issued an invoice (whichever your contract specifies).
5. The amount claimed. The total amount owed, stated clearly. Include GST if applicable.
6. A breakdown of the claimed amount. What work was done, when, and how much each item is worth. This must be detailed enough for the respondent to understand what they’re being asked to pay for.
7. A statement that the claim is made under the Security of Payment Act. Include the name of the relevant Act for your state (e.g., “Building and Construction Industry Security of Payment Act 1999 (NSW)”).

If your payment claim is missing any of these elements, the respondent can reject it as invalid. You’ll have wasted time and still be unpaid.

What common mistakes void a payment claim?

These errors will get your claim rejected:

• Vague or missing breakdown. Saying “work performed $50,000” is not enough. You must itemise: “Labour for formwork (20 days @ $500/day) = $10,000. Materials supplied = $25,000. Plant hire = $15,000.”
• Wrong respondent name or address. If you claim against “Bob’s Building” instead of the registered business name, the respondent can say the claim is not valid against them.
• No mention of the Security of Payment Act. Your claim must state it is made under the Act. This triggers the statutory regime.
• Missing contract details. The respondent must be able to identify which contract you’re talking about. Include the contract date and a one-line description of the work.
• Incorrect entitlement date. If you claim you became entitled to payment before you actually did, the claim can be invalid or rejected.
• Exceeding the claim amount in adjudication. If you lodge a claim for $50,000, you cannot later ask an adjudicator for $55,000. The claim amount is your ceiling.

What format should a payment claim be?

There is no prescribed form in most states, but your claim must be in writing. Email is acceptable. Some states provide optional templates; using them reduces the risk of omitting required information.

A payment claim can be as simple as a formal letter on your letterhead, provided it contains all required elements. Alternatively, you can file a payment claim online using a service that ensures every required element is included and certified correctly before it goes to the respondent.

Keep your language clear and direct:

• Use a subject line: “Security of Payment Act Claim – [Your Name] v [Respondent Name]”
• State the amount claimed prominently at the top.
• List work or supplies in date order, with costs.
• Include a payment due date (typically within 5–7 days).
• State the method of service (e.g., “This claim is served on you by email to [email] on [date]”).

How do you serve a payment claim on the respondent?

Service means delivering the claim to the respondent. Your state’s Act specifies valid methods. These typically include:

• Hand delivery to the person or their office.
• Email to an email address nominated in the contract or given to you by the respondent.
• Registered post to their address.
• Any other method agreed in the contract.

Always keep proof of service: a read receipt, a postal receipt, or a photo of hand delivery. The respondent’s response deadline starts from the date of service.

What happens after you lodge a payment claim?

The respondent has 10 business days (in most states) to issue a payment schedule. A payment schedule is a written response that either:

• Agrees to pay your full claim by the due date, or
• States they will only pay a lesser amount and explains why they are withholding the rest, or
• States they will not pay at all and explains why.

If the respondent pays in full within the deadline, your claim is resolved.

If they issue a payment schedule paying less than the full amount, you can dispute it and request adjudication within strict timeframes (usually 5–10 business days).

If they do not issue a payment schedule at all by the deadline, you can apply for adjudication, and the adjudicator can award you the full claimed amount plus costs.

What is adjudication and how does it work?

Adjudication is a fast, binding decision process. An independent adjudicator (usually a lawyer or industry expert) reviews both your claim and the respondent’s payment schedule, then makes a decision within 10–20 business days.

To apply for adjudication, you lodge an adjudication application with a prescribed panel or authority in your state, pay a fee (typically $200–$500), and serve a copy on the respondent. The respondent has a fixed time to respond (usually 7 business days). The adjudicator then issues a determination, which is binding unless challenged in court (a rare and expensive step).

Adjudication is cheaper and faster than court action. It is the main enforcement mechanism of the Security of Payment Acts.

State-specific payment claim requirements

While the framework is similar across Australia, each state has slight variations. You must comply with your state’s Act:

• NSW: Section 13–17, Building and Construction Industry Security of Payment Act 1999. Payment schedule must be issued within 10 business days. Adjudication application window is 10 business days after payment schedule.
• QLD: Section 37–44, Building Industry Fairness (Security of Payment) Act 2017. Payment schedule must be issued within 10 business days. Adjudication application window is 10 business days.
• VIC: Section 13–18, Building and Construction Industry Security of Payment Act 2002. Payment schedule must be issued within 10 business days. Adjudication application window is 10 business days.
• WA: Section 20–28, Construction Contracts Act 2004. Payment schedule must be issued within 10 business days. Adjudication application window is 7 business days.
• SA: Section 13–18, Building and Construction Industry Security of Payment Act 2009. Payment schedule must be issued within 10 business days. Adjudication application window is 10 business days.
• TAS: Section 13–17, Building and Construction Industry Security of Payment Act 2009. Payment schedule must be issued within 10 business days. Adjudication application window is 10 business days.
• NT: Section 20–26, Construction Contracts (Security of Payments) Act 2004. Payment schedule must be issued within 10 business days. Adjudication application window is 7 business days.
• ACT: Section 13–17, Building and Construction Industry (Security of Payment) Act 2009. Payment schedule must be issued within 10 business days. Adjudication application window is 10 business days.

Key documents to include with your payment claim

While not always mandatory, attaching supporting documents strengthens your claim and speeds up resolution:

1. A copy of the signed contract (or evidence of the contract if oral).
2. Invoices and delivery dockets showing work completed and dates.
3. Photos or site records documenting progress.
4. Email correspondence confirming the work was approved or requested.
5. Proof that you have not been paid (bank statements showing no deposit, or correspondence from the respondent acknowledging non-payment).

Do not overwhelm the respondent with documents, but provide enough to substantiate your claim clearly.

Avoiding disputes: tips for stronger payment claims

Before you lodge a claim, ask yourself:

• Have I performed all the work I claimed payment for?
• Is the work actually covered by the contract?
• Have I issued an invoice or notice of entitlement before?
• Is there a defect in the work that the respondent might claim justifies withholding payment?
• Have I documented everything in writing (emails, photos, delivery slips)?

A strong claim with clear documentation and zero defects is harder for a respondent to dispute and is more likely to result in quick payment or a successful adjudication outcome.

Can you lodge a payment claim online?

Yes. While you can lodge a claim by email or post, using an online service that templates the claim and certifies it is faster and safer. A service like PayClaim walks you through each required field, ensuring nothing is missed, and handles service on your behalf. For a flat $79, you get a compliant, ready-to-serve claim in under an hour.

This is particularly useful if you’re unfamiliar with the legislation or want to avoid the risk of an invalid claim rejecting your right to payment.

What if the respondent disputes your claim?

If the respondent issues a payment schedule claiming some or all of your work is defective, incomplete, or outside the contract scope, you have two choices:

1. Negotiate a settlement and accept a reduced payment.
2. Apply for adjudication and let an independent adjudicator decide.

Do not assume the respondent’s objection is valid. Many builders and contractors lodge disputed payment schedules hoping you’ll give up. Adjudication puts pressure on them to defend their position with evidence. If they cannot, you win.

Next steps: lodge your payment claim

A payment claim under the Security of Payment Act is a tradie’s fastest and cheapest tool to collect unpaid invoices. But only if it is drafted and served correctly.

Review the checklist above, gather your contract and work records, and lodge a claim within 12 months of the entitlement date. If you’re unsure about any step, use an online service to prepare it; the cost is minimal and the peace of mind is invaluable.

Time is your enemy in construction debt. Act now.

Frequently Asked Questions

Q: Do I need a lawyer to lodge a payment claim?

No. You can lodge a payment claim yourself. The Security of Payment Acts are designed to give contractors a fast, accessible enforcement mechanism without needing lawyers. However, if the respondent disputes your claim, you may choose to seek legal advice before adjudication. A lawyer is not required for adjudication itself, though some claimants choose representation.

Q: What if the respondent is insolvent or in administration?

You can still lodge a payment claim. However, if the respondent is insolvent, obtaining payment may be difficult even with an adjudicator’s decision. Insolvency law takes priority. Seek legal advice if the respondent enters administration, receivership, or liquidation while your claim is pending.

Q: Can I claim for costs, interest, and fees on top of the work invoice?

You can claim for costs and expenses that are part of your contract (e.g., site costs, variation orders). Interest and legal fees may be claimable if your contract allows it, but the Security of Payment Act itself does not automatically add interest. Check your contract terms.

Q: What if I do not have a written contract?

You can still lodge a payment claim for work done under an oral contract. However, you must be able to prove the contract existed (emails, text messages, site records, or witness evidence). A written contract makes this much easier, so document all agreements in writing going forward.

Q: How long does adjudication take?

From the date you lodge an adjudication application to the date the adjudicator issues a determination, the process typically takes 15–25 business days. This is much faster than court action, which can take months or years. However, the respondent is given time to respond, and the adjudicator is given statutory deadlines, so delays can occur.