Roofing Subcontractors and the Security of Payment Act — A Practical Guide

If you’re a roofing subcontractor waiting weeks or months for payment, you’re not alone. Cash flow is oxygen for small trades, and when head contractors or builders hold onto your money, it strangles everything downstream. The good news is that every Australian state has a Security of Payment Act specifically designed to help tradies like you get paid faster—without having to spend years in court.

This guide walks you through what the law actually means, how it works, and what your realistic options are.

What Is the Security of Payment Act?

The Security of Payment Act (called the Building and Construction Industry Payments Act in Queensland) is a piece of legislation that gives subcontractors, suppliers, and tradies a fast-track way to claim money owed to them on construction projects. It exists in every Australian state and territory, though the rules vary slightly.

The core idea is this: instead of suing your head contractor in court (which costs tens of thousands and takes years), you can lodge a payment claim. Your contractor then has a short window to respond with a detailed payment schedule explaining what they will and won’t pay, and why. If they don’t respond properly, or if you disagree with their answer, you can go to fast-track adjudication—a quick legal process that issues a binding decision in weeks, not years.

The relevant Acts are:

• New South Wales: Security of Payment Act 1999
• Queensland: Building and Construction Industry Payments Act 2004
• Victoria: Security of Payment Act 2002
• Western Australia: Construction Contracts Act 2004
• South Australia: Security of Payment Act 2009
• Tasmania: Security of Payment Act 2009
• ACT: Security of Payment Act 2009
• Northern Territory: Building and Construction Industry Security of Payment Act 2009

This isn’t a replacement for contract law or court—it’s a tool that sits alongside those things. It’s designed specifically for construction because of how the industry works: subbies do the work upfront, then wait to be paid. The SOP Act levels that playing field a bit.

How the Process Works (In Plain Terms)

Here’s the step-by-step reality:

1. You serve a payment claim. You send a formal claim to your head contractor (or whoever owes you money) detailing the work you’ve done and the amount due. This has to follow the rules of your state’s Act—timing, format, and content matter.
2. They have time to respond. Under most state laws, the respondent has 10 business days (NSW) to 14 calendar days (Victoria) to issue a payment schedule. That document must say what they’ll pay, what they won’t, and their reasons.
3. If they don’t respond properly, you can push for adjudication. If they ignore you, give a vague response, or you genuinely disagree with their decision, you can apply for an adjudicator to decide the claim independently.
4. An adjudicator decides quickly. Fast-track adjudication typically takes 4–8 weeks. The adjudicator looks at your claim, their response, and makes a binding decision. This decision stands even if they later appeal—they have to pay while the appeal is running.

This process is specifically built to move fast because the law recognises that tradies can’t wait 18 months for payment.

Common Myths About the SOP Act

Myth: It guarantees you’ll be paid. It doesn’t. What it does is give you a faster, cheaper way to have a neutral third party (the adjudicator) look at whether the money is actually owed. If your claim is weak, or if the head contractor has a legitimate reason to withhold funds, the adjudicator will side with them. But if you’ve done the work and invoiced properly, you’re in a stronger position than trying to chase them informally.

Myth: You need a lawyer to use it. You don’t. Many tradies lodge payment claims themselves. That said, getting the claim right the first time matters—mistakes in how it’s lodged can sink it. Some subbies choose to get help; others do it themselves. Both happen.

Myth: It works the same way in every state. It doesn’t. Each state’s Act has slightly different timing, procedures, and rules around what must be in a claim. You need to know your state’s version.

What to Do If You’re Owed Money Right Now

If a head contractor or builder owes you money and you’re stuck, here’s a practical path:

1. Check your contract and invoices. Do you have a written contract? Is it clear what you were supposed to do and what you’d be paid? Have you issued a proper invoice with a due date?
2. Send a formal demand letter. A polite but firm email or letter asking for payment by a specific date often works. Keep it factual: date of work, description, amount, invoice number, due date.
3. Know your state’s SOP Act rules. Timing, format, and what must be in your claim all matter. You can find the legislation online, but it’s dense.
4. Lodge a payment claim if they don’t pay. You can file a payment claim yourself, or get help to make sure it meets your state’s legal requirements. The fee is a flat AUD $79, which is a lot cheaper than litigation.
5. Respond to their payment schedule. If they issue one and you disagree, you’ll need to decide whether to accept it, negotiate, or push for adjudication.

The point is: don’t just wait and hope. The SOP Act gives you legal teeth. Using it properly means the head contractor knows you’re serious—and many choose to settle or pay rather than face fast-track adjudication.

Bottom Line

The Security of Payment Act exists because lawmakers recognised that tradies get squeezed. You do the work, you wait for payment, and the system stacks against you. This Act is one tool to even that up. It’s not perfect, and it’s not a silver bullet, but it’s a hell of a lot faster and cheaper than traditional court action.

If you’re owed money and the informal approach isn’t working, it’s worth understanding how your state’s SOP Act works and whether a payment claim makes sense for your situation.