Security of Payment Act NSW — Your Rights as a Subcontractor
New South Wales was actually the first Australian state to enact Security of Payment legislation, passing the Building and Construction Industry Security of Payment Act 1999. More than 25 years later, it remains one of the strongest protections for subcontractors in the country.
Here’s what NSW subcontractors need to know.
Who Is Covered in NSW?
The NSW SOP Act covers anyone who has carried out construction work or supplied related goods and services under a construction contract. Construction work includes building, maintenance, repair, demolition, civil engineering and associated professional services.
Reference Dates in NSW
In NSW, the reference date is determined by your contract. If your contract specifies a date for making progress payment claims, that is your reference date. If no date is specified, the reference date is the last day of each month.
The Payment Claim Requirements
Under the NSW Act, a valid payment claim must:
- Be in writing
- Identify the construction work or goods and services
- State the amount claimed
- State that it is made under the Building and Construction Industry Security of Payment Act 1999
The 10-Day Response Window
The respondent (head contractor) has 10 business days to respond with a payment schedule. Failure to respond means the entire claimed amount is due as a debt — and the claimant can proceed directly to enforcement without adjudication if they choose.
Adjudication in NSW
If the amount is disputed, you can apply to an Authorised Nominating Authority (ANA) for adjudication. NSW has several ANAs including the NSW Fair Trading adjudication registry. The adjudicator must determine the application within 10 business days of receiving the adjudication response.
Why NSW Subcontractors Leave Money on the Table
Despite the strength of the NSW Act, most subcontractors never use it. The reasons are familiar: cost of legal help, fear of damaging the relationship, and not knowing the process. PayClaim solves all three — automated, affordable, and straightforward.
Owed money? You can start your Letter of Demand here — see the whole letter free, then a flat $69 to issue it. PayClaim is not a law firm; payment outcomes are not guaranteed.
Information on this page is general only and does not take account of your individual circumstances. PayClaim prepares and serves payment claim documents based on the information you provide. PayClaim is not a law firm and does not provide legal advice, adjudication representation, debt collection or court enforcement. Payment outcomes are not guaranteed.