Locations/Victoria
Security of Payment · VIC

Security of Payment VIC guide for tradies

Learn how payment claims work in Victoria and how PayClaim helps prepare and serve unpaid construction invoice claims for a fixed $79.

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Quick facts What is SoP? Who can use it What you need Key timeframes What is different here In detail How PayClaim helps If they don't pay FAQ

Victoria Security of Payment quick facts

State
Victoria
Legislation
Building and Construction Industry Security of Payment Act 2002 (VIC)
Payment claim provision
section 14
Time to respond
10 business days
Time limit to claim
No later than the day before the latest of the contractual date, 6 months after practical completion of all the work, or 6 months after all related goods and services were supplied (section 14C).
Adjudication applied for to
an authorised nominating authority authorised by the Victorian Building Authority

What is Security of Payment in Victoria?

Security of Payment laws are designed to help contractors and subcontractors claim payment for construction work without waiting months for unpaid invoices to be resolved. The process and deadlines vary by state, so it is important to use the correct rules for where the work was completed.

PayClaim helps make the process easier by collecting the key information, preparing the claim documents and serving them electronically based on the details you provide.

Who can use it?

Subcontractors
Builders
Electricians
Plumbers
Roofers
Carpenters
Civil contractors
Construction suppliers
Consultants & service providers

Eligibility depends on the work, contract, location and circumstances. For complex matters, seek legal advice.

What you need before you start

Invoice or payment request
Debtor or head contractor details
Project or site address
Contract, quote or purchase order (if available)
Emails, texts or messages
Photos or proof of work completed
Variations or extras (if relevant)
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Key timeframes in Victoria

1

Serve the payment claim (section 14)

You must serve it in time: No later than the day before the latest of the contractual date, 6 months after practical completion of all the work, or 6 months after all related goods and services were supplied (section 14C).

2

They respond — 10 business days (section 15)

The respondent has 10 business days after the payment claim is served, or the period in the contract, whichever expires earlier (section 15).

3

If they do not respond

If no payment schedule is served in time, the respondent becomes liable to pay the claimed amount on the due date (section 15), recoverable as a debt without a cross-claim or contract defence.

4

Adjudication (section 18)

10 business days after receiving a payment schedule, or 10 business days after the due date where a scheduled amount goes unpaid (section 18). The application is made to an authorised nominating authority authorised by the Victorian Building Authority.

5

Keep records

Keep copies of invoices, evidence, service records and correspondence. Proof of when and how the claim was served is what the timeframes above run from.

What is different about Victoria

Victoria was substantially reformed with effect from 15 April 2026. The excluded amount and claimable variation regime, and adjudication review, have been repealed, and performance security claims and notice-based time bar provisions added. Guidance written before April 2026 is out of date. The amendments do not apply to a payment claim served before that date.

Statutory references on this page were checked against the consolidated Building and Construction Industry Security of Payment Act 2002 (VIC) on the official Victoria legislation website in July 2026. Timeframes interact with your contract and with the statutory due date for payment, so check your own contract. This is general information, not legal advice.

Security of Payment Victoria (VIC)

PayClaim prepares and serves formal Security of Payment claims in Victoria under the Building and Construction Industry Security of Payment Act 2002 (Vic) — for a flat $79.

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The Act that applies in Victoria

Victoria is covered by the Building and Construction Industry Security of Payment Act 2002 (Vic). Like every Australian state and territory, Victoria has its own Security of Payment legislation giving contractors, subcontractors and suppliers a statutory right to recover money owed for construction work — without first going to court.

Whatever your trade — electrician, plumber, concreter, carpenter, roofer, painter, tiler, scaffolder, formworker, earthmover or supplier — if you’ve performed construction work in Victoria and you’ve issued an invoice that hasn’t been paid, the Victorian SOP Act is the legal lever built for your situation.

Who can use a payment claim in VIC

  • Subcontractors of every trade working on commercial, residential and civil projects
  • Head contractors and licensed builders chasing unpaid progress claims
  • Suppliers of construction materials, goods or related services
  • Plant hire, scaffolding, formwork, earthmoving and related construction services
  • Consultants and design professionals providing construction-related services
  • Sole traders and small construction businesses operating across Melbourne, Geelong, Ballarat, Bendigo, Shepparton and Mildura

What you need before starting

You don’t need to know the legislation to use PayClaim — you just need a few details about the job and the unpaid invoice:

  • The invoice you’ve issued and any contract, quote or purchase order if you have one
  • The debtor’s business name, ABN (if known) and a contact email
  • The project or site address in Victoria
  • A short description of the construction work performed
  • Any supporting evidence — site photos, sign-off emails, variation documents

What PayClaim does for you

For a flat $79, PayClaim:

  • Prepares a formal payment claim under the Victorian SOP Act, with the statutory notice wording the Act requires
  • Itemises the amount claimed and references your supporting documents
  • Serves the prepared claim electronically on the respondent on your behalf
  • Records and emails you proof of service
  • Calculates the response-deadline date based on the rules in Victoria and the details of your claim
  • Alerts you as the deadline approaches so you can act if the respondent doesn’t respond or doesn’t pay

Response deadlines depend on the state, the contract and the type of claim — PayClaim calculates the relevant deadline from the information you provide so you don’t have to.

What happens after the claim is served

Once served, the respondent has a statutory window under the Victorian SOP Act to either pay the claimed amount or formally respond setting out what they’re paying and what (if anything) they’re withholding. If they pay in full, you’re done. If they don’t respond, the unpaid amount may become a statutory debt enforceable through the courts. If they dispute the claim, you have the option to apply to an authorised nominating authority for adjudication — a fast, lower-cost alternative to court.

PayClaim is built for the prepare-and-serve step. For complex disputes, adjudication strategy, court enforcement or insolvency-related matters, you should seek advice from a qualified construction lawyer in Victoria.

Important. PayClaim is an online payment claim preparation and service platform. PayClaim is not a law firm, debt collection agency, adjudicator or court enforcement service. We do not provide legal advice. For complex disputes, adjudication, legal proceedings or enforcement in Victoria, seek advice from a qualified construction lawyer.

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How PayClaim helps

1

Tell us about the invoice

Enter who owes you money, the amount unpaid, the work completed and the project location.

2

Upload your evidence

Add invoices, quotes, contracts, messages, photos and supporting documents.

3

PayClaim prepares the claim

PayClaim prepares the payment claim documents based on the information provided.

4

PayClaim serves the claim

PayClaim electronically serves the claim and gives you a record of what was sent.

What happens if they do not pay?

If the other party does not pay, they may respond, dispute the claim or ignore it. Your next options depend on the state, the contract, the amount claimed and the circumstances.

● Best case

They pay

Some respondents pay once a formal claim is served.

● Within window

They respond

They may reply, including with a payment schedule stating what they propose to pay.

● Takes longer

They dispute it

You can consider adjudication, legal advice or other options.

● No reply

They ignore it

If the deadline passes with no response, you may have further options depending on your state.

PayClaim does not provide legal advice, adjudication representation or court enforcement.

Victoria Security of Payment FAQ

What is Security of Payment in Victoria? +

It is a statutory process for claiming payment for construction work. In Victoria it operates under the Building and Construction Industry Security of Payment Act 2002 (VIC), and a payment claim is made under section 14. It is designed to resolve payment far faster than court.

How long does the other party have to respond in Victoria? +

The respondent has 10 business days after the payment claim is served, or the period in the contract, whichever expires earlier (section 15).

What happens if they do not respond in time in Victoria? +

If no payment schedule is served in time, the respondent becomes liable to pay the claimed amount on the due date (section 15), recoverable as a debt without a cross-claim or contract defence.

How long do I have to serve a payment claim in Victoria? +

No later than the day before the latest of the contractual date, 6 months after practical completion of all the work, or 6 months after all related goods and services were supplied (section 14C).

When can I apply for adjudication in Victoria, and who to? +

10 business days after receiving a payment schedule, or 10 business days after the due date where a scheduled amount goes unpaid (section 18). The application is made to an authorised nominating authority authorised by the Victorian Building Authority.

What is different about Victoria? +

Victoria was substantially reformed with effect from 15 April 2026. The excluded amount and claimable variation regime, and adjudication review, have been repealed, and performance security claims and notice-based time bar provisions added. Guidance written before April 2026 is out of date. The amendments do not apply to a payment claim served before that date.

Can subcontractors use Security of Payment laws in Victoria? +

Subcontractors are often able to use the process, but eligibility depends on the work, the contract and the circumstances. For complex matters, seek legal advice.

What documents do I need? +

Your invoice or payment request, the debtor's details, the project address, any contract or quote, and supporting evidence such as emails, messages and photos.

Does PayClaim guarantee payment? +

No. PayClaim does not guarantee payment or outcomes. We prepare and serve your claim and give you a clear record of what was sent.

Is PayClaim a law firm? +

No. PayClaim prepares and serves payment claim documents based on the information you provide. We are not a law firm and do not provide legal advice.

What happens after the claim is served? +

You receive a record of the served claim. The other party may pay, respond, dispute or ignore it, and your next options depend on the circumstances.

Can I start for free? +

Yes. You can start your claim for free and only pay the $79 when you're ready for PayClaim to prepare and serve it.

How much does PayClaim cost? +

A fixed $79 per claim, once-off and GST inclusive. No subscription, no commission and no success fee.

Other states

Looking for another state?

QLD
Queensland
Security of Payment QLD
NSW
New South Wales
Security of Payment NSW
VIC
Victoria
Security of Payment VIC
WA
Western Australia
Security of Payment WA
SA
South Australia
Security of Payment SA
TAS
Tasmania
Security of Payment TAS
ACT
ACT
Security of Payment ACT
NT
Northern Territory
Security of Payment NT

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