Security Of Payments Act NSW – Making a Claim

This section is for contractors, suppliers, and consultants who are owed money for construction work and or related goods & services provided for a construction project situated in NSW.

Building & Construction Industry Security Of Payments Act 1999

Including Amendments. (Applicable to Construction Contracts entered into on or after 21 October 2019)

Making A Claim Under The Security Of Payments Act NSW

For a payment claim to be valid and effective under the Security Of Payments Act NSW the following details must be included, correct and complete:

Construction Contract

There must be a construction contract within the meaning of the Security Of Payment Act NSW in place and on foot between the parties to a claim.

Time For Making A Claim:

This is the date which both parties have agreed is the date on which (or after) the Payment Claim can be lodged for the preceding months work. If there is no date agreed, pursuant to the Security Of Payments Act NSW it defaults to the last day of the month. You can only make one claim (serve one invoice) per month.

Entity Details:

Both of the entities details that have contracted must be complete and correct inclusive of ABN & ACN numbers

Project Details:

Name of the project if there is one and or a brief  description of the project and the project site address.

Identifying the construction work:

As briefly as possible but correctly and comprehensively itemise the work, goods or services for which you are claiming payment for.

Calculating the Amount:

It will either be as set out in the contract, or, if it is not set out in the contract you must show how you have calculated the total amount claimed.

Due Date For Payment:

(1) Pursuant to the Security Of Payments Act NSW a progress payment under a construction contract becomes due and payable:

(a) on the date on which the payment becomes due and payable in accordance with the terms of the contract, or

(b) if the contract makes no express provision with respect to the matter, or stipulates a period greater than 20 business days, then payment is due on the date occurring 20 business days after a payment claim is received by the respondent. (In the case of a claim on a principal contractor the maximum period is 15 business days)

Serving the Claim:

Any notice that by or under the Security Of Payments Act NSW is authorised or required to be served on a person may be served on the person:

(a) by delivering it to the person personally, or

(b) by lodging it during normal office hours at the person’s ordinary place of business, or

(c) by sending it by post or facsimile addressed to the person’s ordinary place of business, or

(d) in such other manner as may be prescribed by the regulations for the purposes of this section, or

(e) in such other manner as may be provided under the construction contract concerned.

(2) Service of a notice that is sent to a person’s ordinary place of business, as referred to in subsection (1) (c), is taken to have been effected when the notice is received at that place.

(3) The provisions of this section are in addition to, and do not limit or exclude, the provisions of any other law with respect to the service of notices.

A sample Security Of Payments Act NSW Payment Claim form can be found here.