HVAC Mechanics: How to Use the Security of Payment Act in Australia

If you’re an HVAC mechanic or subcontractor working in Australia and a head contractor or builder hasn’t paid you, you’re not powerless. Every Australian state has a Security of Payment Act designed specifically to help tradies like you recover money quickly—without waiting months or spending thousands on legal fees.

The catch? Most tradies don’t know these laws exist, or they think they’re too complicated. They’re not. This guide walks you through the basics and shows you how to take action.

What Is the Security of Payment Act?

The Security of Payment Act is a state-based law that gives construction contractors and subcontractors a fast-track way to recover unpaid invoices. It’s sometimes called the “construction payment law” and operates slightly differently in each state, but the principle is the same: you can lodge a formal payment claim, and if the other party doesn’t respond properly, you can go to adjudication—a quick, binding decision by an independent adjudicator.

Here are the key acts by state:

• NSW: Security of Payment Act 1999
• QLD: Building Industry Fairness (Security of Payment) Act 2017
• VIC: Building and Construction Industry Security of Payment Act 2002
• WA: Construction Contracts Act 2004
• SA: Construction Contracts Act 2003
• TAS: Building and Construction Industry Security of Payment Act 2009
• ACT: Security of Payment Act 2009
• NT: Construction Contracts (Security of Payments) Act 2004

The upside? These laws move fast. You’re not waiting for a court hearing in twelve months. You’re looking at weeks.

Why the Security of Payment Act Matters for HVAC Work

HVAC installation and maintenance is common construction work. Whether you’re installing ducting on a new build, servicing commercial units, or replacing heating systems on a renovation, you’re covered by your state’s SOP Act if the contract is worth more than the prescribed amount (usually AUD 20,000 for most states, though this varies).

Here’s what makes it valuable:

1. You don’t need a lawyer to lodge a claim—you can do it yourself or use a self-service tool
2. The respondent (the party who owes you) has limited time to respond—usually 10 business days to issue a payment schedule
3. If they don’t respond correctly, or if you disagree with their response, you can apply for adjudication within 5–10 business days
4. The adjudicator’s decision is binding and enforceable in court if needed

Many debtors choose to pay or settle rather than face fast-track adjudication. But the law isn’t about guarantees—it’s about giving you a formal process and a level playing field.

How to File a Payment Claim Under the Security of Payment Act

The process differs slightly by state, but the general steps are the same. You’ll need to:

1. Check your contract and timing. Your contract must be a “construction contract” under the Act (HVAC work qualifies). You must lodge your claim within a set period—usually within a prescribed time frame or within 12 months of the work being done, depending on your state. Check your state’s Act for exact deadlines.

2. Prepare your payment claim. Your claim should include:

• A clear description of the work done or goods supplied
• The dates of the work
• The amount claimed (including GST if applicable)
• Reference to the contract or purchase order
• A statement that you believe the amount is due

3. Serve the claim. You must give a formal copy to the respondent—usually the head contractor, builder, or property owner who hired you. Service rules vary by state; personal delivery, email, or post are usually acceptable, but check your state’s legislation.

4. Wait for a payment schedule. The respondent has 10 business days (in most states) to issue a “payment schedule”—a document explaining which parts of your claim they dispute, if any, and why. If they don’t respond, or if their response is defective, you can move to adjudication.

If you want to skip the DIY paperwork and let software handle the compliance side, you can file a payment claim through a self-service platform that checks your details against your state’s legislation and prepares the documents for you. It costs a flat fee of AUD 79.

What Happens If They Don’t Respond—or Respond Badly

Once you’ve served your claim, the respondent’s move. If they don’t issue a valid payment schedule within the deadline, you’ve got grounds to apply for adjudication. If they do issue one, but you disagree with it (or parts of it), you can still apply for adjudication within 5–10 business days.

Adjudication is where the magic happens. An independent adjudicator—usually a retired lawyer or construction expert—reviews both your claim and the respondent’s response, then makes a binding decision on what’s owed. The whole process typically takes 2–4 weeks from application to decision.

The respondent can’t ignore the adjudicator’s decision. If they don’t pay within 5 business days, you can enforce the adjudication certificate in court. That’s your safety net.

Bottom Line

The Security of Payment Act isn’t a silver bullet, but it’s powerful. It exists because government recognised that tradies were getting left out of pocket for months while they fought for money through expensive court processes. The Act cuts through that.

If you’re owed money for HVAC work and the head contractor or builder is stalling, you have legal rights. Understand which Act applies in your state, check your contract and timings, prepare a clear claim, and serve it formally. If the other party doesn’t respond properly, adjudication is your next step.

Don’t sit on unpaid invoices. The sooner you act, the sooner you get paid—or the sooner you know what you’re dealing with.