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:
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.
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.
Contractors have a right to 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:
Important: Be aware of time limits for making a progress payment claim. See our Summary of key deadlines below.
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.
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.
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.
Key deadlines/due dates*
Payment by principal to head contractor
15 days after claim is made
Payment by head contractor to subcontractor
20 days after claim is made
Payment by head contractor to subcontractor (residential)
10 days after claim is made
*Key deadlines/due dates listed in the table above refer to the number of business days.
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.
Key deadlines/due dates*
After claim is made:
10 days after claim is made
5 days after receiving notice of intention to apply for adjudication
*Key deadlines/due dates listed in the table above refer to the number of business days.
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.
Key deadlines/due dates*
Claimant receives payment schedule, does not dispute schedule but respondent fails to pay by due date
20 days to lodge application
Claimant receives payment schedule, schedule amount is less than claim amount
10 days to lodge application
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
Notice of intention to apply for adjudication
20 days after due date for payment has passed
Should be within 4 days of adjudication application, otherwise claimant can make new application
New adjudication application
Within 5 days of becoming entitled to lodge new application
Due 5 days after receiving adjudication application from claimant, or 2 days after receiving adjudicator acceptance
Due within 10 days of adjudicator acceptance
Payment of adjudication amount
5 days after release of adjudicator decision
*Key deadlines/due dates listed in the table above refer to the number of business days.
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.
Key deadlines/due dates*
Principal contract served with payment withholding request. If person no longer a principal contractor
10 days to give notice to claimant
Claimant must serve adjudication determination on principal contractor
Within 5 days of receiving determination
If adjudication application is withdrawn, claimant must notify principal contractor
Within 5 days of the application being withdrawn
Claimant must serve notice of claim to principal contractor under Contractors Debt Act 1997
Within 20 days of serving adjudication determination on them
*Key deadlines/due dates listed in the table above refer to the number of business days.
You can report a possible breach to NSW Fair Trading including:
Use the breach reporting form (DOCX, 28.54 KB) when reporting and give accurate and detailed information.
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