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

The Act provides (s 13(4)) that a payment claim may be served within the period set by the contract or within 12 months after the work was last carried out, whichever is later. The Act also requires (s 13(2)(c)) that the claim state it is made under the Act.

What happens if no payment schedule arrives in NSW?

The Act requires (s 14(4)) a payment schedule within the time set by the contract or 10 business days after the claim is served, whichever is earlier. If none is provided, the Act provides that the respondent becomes liable for the full claimed amount.

When does payment fall due for a subcontractor in NSW?

The Act provides (s 11(1B)) that a progress payment to a subcontractor becomes due 20 business days after the payment claim is served. For a head contractor claiming on the principal it is 15 business days (s 11(1A)); for exempt residential construction contracts it is as the contract provides, otherwise 10 business days (s 11(1C)).

How quickly is an adjudication decided in NSW?

The Act provides (s 21(3)(a)) that the adjudicator must determine the application within 10 business days after the adjudication response is lodged or the window for lodging it ends.

Security of Payment NSW — A Subcontractor's Plain-English Guide

Q: Do weekends and the Christmas break count as business days in NSW?

No. The Act defines a business day (s 4) as a day that is not a Saturday, Sunday or public holiday, and not 27 to 31 December.

By Cal Crane — founder, TradeControl; Operations Manager, Barzen Projects

Disclosure: Cal Crane is the founder of TradeControl and also Operations Manager at Barzen Projects, where TradeControl is used on live commercial sites. Barzen is not an independent customer; it is where the product is built and tested in the field. Figures shown are from Barzen's real usage and are verifiable.

General information only — not legal advice.

In NSW you serve a payment claim that states it is made under the Act, the respondent has up to 10 business days to reply with a payment schedule, payment to a subcontractor falls due within 20 business days, and unpaid or short-scheduled amounts can be taken to adjudication on fixed deadlines.

The Act

The Building and Construction Industry Security of Payment Act 1999 (NSW) is in force in its current consolidated form. The most significant current-era changes came through the 2018 amendment Act (No 78 of 2018), in force from 2019 — among other things, those amendments re-introduced the requirement that a payment claim state it is made under the Act. That endorsement requirement is current law, so a claim without it is exposed.

Serving a payment claim

The Act provides (s 13(4)) that a payment claim may be served within the period set by the construction contract or within 12 months after the construction work to which the claim relates was last carried out, whichever is later.

The claim must state that it is made under the Act (s 13(2)(c)). This wording is not optional decoration — it is a statutory requirement of a valid claim under the current law. If your subcontract is connected to residential work, note that NSW government guidance describes an additional special statement for certain residential-connected subcontracts; check the guidance linked in the Sources section below.

The payment schedule

The Act requires (s 14(4)) the respondent to provide a payment schedule within the time set by the contract or 10 business days after the payment claim is served, whichever is earlier. The schedule states what the respondent proposes to pay and why any amount is withheld.

If no payment schedule is provided in time, the Act provides that the respondent becomes liable for the full claimed amount. Silence is not neutral under this Act — it has consequences for the respondent.

When payment falls due

Principal to head contractor: due 15 business days after the claim is served (s 11(1A)).
Payment to a subcontractor: due 20 business days after the claim is served (s 11(1B)).
Exempt residential construction contracts: as the contract provides, otherwise 10 business days (s 11(1C)).

Adjudication

The application deadline depends on which situation you are in:

Schedule provided for less than the claim: apply within 10 business days after receiving the schedule (s 17(3)(c)).
Scheduled amount not paid by the due date: apply within 20 business days after the due date (s 17(3)(d)).
No schedule at all: you must first give the respondent notice of your intention to apply, within 20 business days after the due date (s 17(2)). The respondent then has 5 business days to provide a schedule, and you apply within 10 business days after that 5-day period ends (s 17(3)(e)).

The respondent's adjudication response is due at the later of 5 business days after receiving the application or 2 business days after notice of the adjudicator's acceptance. The adjudicator must decide within 10 business days after the response is lodged or the response window ends (s 21(3)(a)).

Business days are not calendar days

Every timeframe above runs in business days. The Act defines a business day (s 4) as a day that is not a Saturday, Sunday or public holiday, and not 27 to 31 December. Over the Christmas period the clock stops for those excluded days, so a deadline that looks like two weeks on the calendar can stretch well past that — and a deadline you thought you had can arrive sooner than a calendar count suggests. Count business days, not calendar days.

Key timeframes at a glance

Step	Timeframe	Source
Serve payment claim	Contract period or 12 months after work last carried out, whichever later	s 13(4)
Payment schedule	Earlier of contract time or 10 business days	s 14(4)
Payment due — subcontractor	20 business days after claim served	s 11(1B)
Payment due — head contractor	15 business days after claim served	s 11(1A)
Adjudication — schedule less than claim	10 business days after receiving schedule	s 17(3)(c)
Adjudication — scheduled amount unpaid	20 business days after due date	s 17(3)(d)
Adjudication — no schedule	Notice within 20 business days after due date; respondent has 5 business days; apply within 10 business days after that period	s 17(2), s 17(3)(e)
Adjudicator's decision	10 business days after response lodged or response window ends	s 21(3)(a)

The paperwork that wins these arguments

The paperwork that wins these arguments is made on the day, not assembled the night before an adjudication application. Signed day dockets, logged site issues, completed site forms and scope queries answered against your actual SOW are the records a payment claim stands on. TradeControl's Day Dockets, Site Issues, Site Forms and SOW scope queries build that record as the work happens — see the full feature set.

Sources

Building and Construction Industry Security of Payment Act 1999 (NSW): legislation.nsw.gov.au/view/whole/html/inforce/current/act-1999-046
NSW Government — Making a payment claim: nsw.gov.au/…/security-of-payment/making-a-payment-claim
NSW Government — Responding to a payment claim: nsw.gov.au/…/security-of-payment/responding-to-a-payment-claim
NSW Government — Responding to an adjudication application: nsw.gov.au/…/security-of-payment/responding-to-an-adjudication-application

If a payment is genuinely in dispute or a deadline has already passed, speak to a construction lawyer before you act — the timeframes above are strict and the right move depends on your contract and your facts.

TradeControl provides commercial support tools only. It does not provide legal advice.