Time Bars Under the SOP Act — Don’t Lose Your Right to Claim

You’ve done the work. The invoice is due. But the money hasn’t landed, and now you’re wondering how long you actually have to chase it up legally before the clock runs out.

The Security of Payment Act in your state sets strict time limits—what lawyers call “time bars”—on when you can lodge a payment claim. Miss these deadlines and you lose your right to claim altogether. No second chances. No extensions. Your right to enforce payment simply expires.

This isn’t something to leave to chance. Here’s what every tradie and subcontractor needs to understand.

What Is a Time Bar and Why It Matters

A time bar is a legal deadline. Once it passes, you can’t lodge a payment claim under the SOP Act, even if you’re owed legitimate money.

The SOP Act exists to give tradies and subcontractors a fast, structured way to chase payment disputes without taking a builder or head contractor to court. But there’s a catch: you have to act within the timeframe the law sets. The Act doesn’t wait for you to get around to it.

Different states have different deadlines. This matters because if you’re working across state lines—or if you’re not sure which state’s Act applies to your contract—you could easily get it wrong.

Time Bars by State: Know Your Deadline

Here’s the practical breakdown:

1. New South Wales (NSW SOP Act 1999): You have 12 months from when a payment becomes due to lodge a claim. After 12 months, your right to claim expires.
2. Queensland (Building Industry Fairness Act 2017): The window is also 12 months from the due date, but Queensland has some different procedural steps, so check your contract carefully.
3. Victoria (SOP Act 2002): 12 months from the due date or from when you could first have claimed, whichever is later.
4. Western Australia (Construction Contracts Act 2004): 12 months, with some variations depending on whether you’re claiming for retention amounts.
5. South Australia (SOP Act 2003): 12 months from the date payment becomes due.
6. Tasmania (SOP Act 1997): 12 months from the date of the claim.
7. ACT & NT: Both have 12-month windows, though the ACT Act 2009 has some nuances around when the clock starts ticking.

The pattern is clear: 12 months is the standard across Australia. But “from when” the clock starts can vary slightly, and some states have exceptions (particularly around retention claims or variations). If your contract is with an interstate head contractor, clarify upfront which Act governs the work.

When Does the Clock Actually Start?

This is where tradies often get caught out. The deadline doesn’t start when you decide to chase payment. It starts from a specific date set by the Act, usually:

• The date the invoice or payment claim becomes due under your contract
• The date you served a notice to claim (if your contract or the Act requires one)
• The date you could first have lodged a claim, even if you didn’t

Read your contract closely. Some include notice periods or dispute resolution steps that can affect when you’re legally entitled to lodge a SOP claim. Get this wrong and you might think you have time when you don’t.

If you’re unsure, work backwards from today’s date. If it’s been 11 months since the invoice was due, don’t wait another month. Act now.

What Happens if You Miss the Deadline?

If you lodge a payment claim after the time bar has expired, the head contractor or builder can simply reject it outright. The adjudicator—the independent person who decides disputes under the SOP Act—won’t even hear your case. They’re bound by the same time limits.

You don’t get a hearing. You don’t get to explain why you were late. The claim is gone.

After the time bar expires, your only option is to pursue the debt through the courts under general contract law, which is slower, more expensive, and usually not practical for small to medium amounts.

How to Stay on Track

The safest approach is straightforward:

• Mark the 12-month deadline on your calendar the day an invoice is due—or the day you realise payment is overdue
• Keep a simple record of which invoices are unpaid and when they fell due
• If you need to chase payment, send a written request first (emails work). Keep a copy
• If the head contractor doesn’t respond or disputes the amount, don’t sit on it. File a payment claim well before the 12-month mark—ideally with at least 4–6 weeks to spare, to give yourself buffer time in case there are any hitches

The SOP Act gives you a fair, fast process. But it only works if you use it in time. Once the time bar passes, the Act can’t help you.

Don’t leave money on the table because of a missed deadline. Know your state’s rules, mark your calendar, and act when you need to. It’s that simple.