All contractors doing construction work or providing goods or services under a construction contract have the right to receive ‘progress payments’ for work delivered. This is to support cash flow to contractors.
This page has general information about Security of Payments rules.
For specific information, select:
- Recent changes
- Making a payment claim
- Responding to a payment claim
- Applying for adjudication
- Authorised nominating authorities
- Making a payment withholding request
- Responding to an adjudication application
- Enforcing payment
- Retention money
- FAQs
- CPD guidelines for adjudicators
What to do if you have not been paid
There are two steps to take if you have not received a payment schedule within the required number of business days after making a claim, or you have not been paid by the due date.
- Ensure you have made a claim for payment. Go to the making a payment claim page for more information.
- Apply for adjudication. Go to the applying for adjudication page for more information.
You can also get your own independent legal advice about commencing action in an appropriate court
Note: NSW Fair Trading does not recover money owed to a person.
Entitlement to progress payments (Section 8 of the Act)
Contractors have a right to progress payments:
- whether a contract is verbal, written or absent, and
- even if a contract states the contractor cannot claim progress payments.
Unless otherwise stated in the contract, progress payment claims can only be made once per month. The progress payment amount is calculated based on:
- the terms of the contract, or
- the value of the work carried out (if not specified in the contract terms).
Important: Be aware of time limits for making a progress payment claim. See our Summary of key deadlines below.
Disputes
If there is a dispute over the amount of a progress payment owed, contractors can have an adjudicator determine the dispute, under certain conditions. Go to the applying for adjudication page to find out when and how to apply for adjudication and more information. The payment claim and adjudication flow chart (DOCX, 75.76 KB) on our website shows the payment claim and applying for adjudication processes.
Summary of key deadlines
The tables below shows the key deadlines set out in the Act for making a payment claim, responding to a payment claim with a payment schedule, applying for adjudication and making a payment withholding request (refer to the relevant pages for full details).
These deadlines are only the maximum time frames provided by the Act if your contract does not specifically set out deadlines. Your contract can specify shorter deadlines, so you should always check your contract first.
Payment following a payment claim
After a payment claim is made for construction work and services complete, the following due dates for payment apply. Go to our making a payment claim page for more information.
Payment claim | Key deadlines/due dates* | Act Reference |
|---|---|---|
Payment by principal to head contractor | 15 days after claim is made | 11(1A)(a) |
Payment by head contractor to subcontractor (non-residential) | 20 days after claim is made | 11(1B)(a) |
Payment by head contractor to subcontractor (residential) | 10 days after claim is made | 11(1C)(b) |
*Key deadlines/due dates listed in the table above refer to the number of business days.
Giving a payment schedule
A payment schedule can be made if the person responding to a claimant does not intend to pay the total amount claimed and states why. The payment schedule is only valid if provided within the set periods outlined below. Go to our responding to a payment claim page for more information.
Payment schedule | Key deadlines/due dates* | Act Reference |
|---|---|---|
After claim is made:
| 10 days after claim is made | 14(4)(ii) |
| 5 days after receiving notice of intention to apply for adjudication | 17(2)(b) |
*Key deadlines/due dates listed in the table above refer to the number of business days.
Adjudication process
Only a claimant can start adjudication and they must apply within set periods. The key dates for the claimant, respondent and adjudicator in this process are listed below. Go to our applying for adjudication page for more information.
Adjudication application | Key deadlines/due dates* | Act Reference |
|---|---|---|
Claimant receives payment schedule, does not dispute schedule but respondent fails to pay by due date | 20 days to lodge application | 17(3)(d) |
Claimant receives payment schedule, schedule amount is less than claim amount | 10 days to lodge application | 17(3)(c) |
No payment schedule received, due date has passed, respondent given notice of intention to apply for adjudication, respondent given further 5 days to give payment schedule | 10 days to lodge from last day of the 5 day notice period | 17(3)(e) |
Notice of intention to apply for adjudication | 20 days after due date for payment has passed | 17(2)(a) |
Adjudicator acceptance | Should be within 4 days of adjudication application, otherwise claimant can make new application | 26(1)(a) |
New adjudication application | Within 5 days of becoming entitled to lodge new application | 26(3) |
Adjudication response | Due 5 days after receiving adjudication application from claimant, or 2 days after receiving adjudicator acceptance | 20(1) |
Adjudicator’s decision | Due within 10 days of adjudicator acceptance | 21(3)(a) |
Payment of adjudication amount | 5 days after release of adjudicator decision | 23(1)(a) |
*Key deadlines/due dates listed in the table above refer to the number of business days.
Payment withholding request
A claimant who has made an adjudication application can serve a payment withholding request. This directs a principal contractor (above the respondent in a chain of contracts) to hold back a respondent's payment so there is enough money to cover a claim. Go to our make a payment withholding request page for more information.
Payment withholding request | Key deadlines/due dates* | Act Reference |
|---|---|---|
Principal contract served with payment withholding request. If person no longer a principal contractor | 10 days to give notice to claimant | 26A(5) |
Claimant must serve adjudication determination on principal contractor | Within 5 days of receiving determination | 26B(5) |
If adjudication application is withdrawn, claimant must notify principal contractor | Within 5 days of the application being withdrawn | 26D(3) |
Claimant must serve notice of claim to principal contractor under Contractors Debt Act 1997 | Within 20 days of serving adjudication determination on them | 26B(3) |
*Key deadlines/due dates listed in the table above refer to the number of business days.
Report a breach of Security of Payment laws
You can report a possible breach to NSW Fair Trading including:
- where a Head Contractor has supplied a false or misleading supporting statement with a payment claim, or
- where a Head Contractor has not supplied a supporting statement with a payment claim, or
- other non-compliance with the requirements of the Act or its associated Regulation.
Use the breach reporting form (DOCX, 28.54 KB) when reporting and give accurate and detailed information.
Contact us
If you require assistance or have a question about the Security of Payment laws, contact us by email at Securityofpayment@customerservice.nsw.gov.au or post to:
Building Commission NSW
Security of Payment Branch
PO Box 226
Parramatta NSW 2124