How to Write a Valid Payment Claim Under the Security of Payment Act

The Payment Claim: Your Most Important Document

A payment claim is not just an invoice with different branding. It is a formal legal document that triggers statutory rights and obligations under the Security of Payment Act. Get it right, and you have powerful legal protections. Get it wrong, and the claim may be invalid — meaning you start again from scratch.

Essential Elements of a Valid Payment Claim

1. Writing

The payment claim must be in writing. An oral request for payment is not a payment claim under the Act.

2. Identify the Work

The claim must identify the construction work or goods and services to which it relates. A reference to the contract, scope of works, or specific invoice number is sufficient in most cases. The description doesn’t need to be highly detailed — but it must be clear what work the claim is for.

3. State the Amount Claimed

The claim must state the amount claimed. This is typically the total outstanding balance including GST. If you are claiming for multiple items (e.g. base contract work plus variations), itemise them clearly.

4. The Statutory Statement — Do Not Miss This

This is the most commonly missed requirement. The payment claim must state that it is made under the relevant Act. The exact wording varies by state, but in QLD it must read: “This is a payment claim made under the Building Industry Fairness (Security of Payment) Act 2017.”

Without this statement, your document is not a payment claim under the Act. It’s just an invoice. You get no statutory protections.

What NOT to Do

• Don’t send a payment claim before your reference date
• Don’t serve multiple payment claims for the same reference date
• Don’t forget to keep proof of service (email read receipt or registered post tracking)
• Don’t include work that is not covered by the construction contract

PayClaim Generates a Compliant Payment Claim Automatically

PayClaim’s AI reads your invoice and contract details, identifies the correct statutory statement for your state, drafts a fully compliant payment claim document, and serves it on your head contractor. The entire process takes minutes — not days.