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

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 Victoria you can serve one payment claim per named month from the last day of that month, the respondent has up to 10 business days to give a payment schedule, payment falls due within a 20-business-day statutory cap, and unpaid or short-scheduled amounts go to adjudication on tight 10-business-day windows.

The Act — and the 15 April 2026 reforms

The Building and Construction Industry Security of Payment Act 2002 (Vic) is in force — the authorised consolidation is Version 015, incorporating amendments as at 24 June 2026.

The Act was substantially reformed by the Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Act 2025 (No 43/2025), which commenced on 15 April 2026. Three features of the old Victorian regime were abolished: reference dates, the excluded-amounts regime, and "claimable variations" (the definitions were repealed by No 43/2025 s 5(2)). If you learned the Victorian Act before 2026, unlearn those three concepts — they describe the old regime only. Claims now run on a named-month system instead.

Serving a payment claim

The Act provides (s 14A(1)) that a payment claim may be served on and from the last day of the named month in which construction work was first carried out, and on and from the last day of each subsequent named month.

There is a December rule (s 14A(2)): for work carried out between 1 and 21 December, a claim may be served from 22 December; for work carried out between 22 and 31 December, a claim may be served from 31 January.

  • Latest date to claim (s 14C): no later than the day before the latest of the date set by the contract, 6 months after practical completion of all the work, or 6 months after the last supply of related goods and services.
  • Frequency (s 14D(1)): one claim per named month, unless the contract allows more.
  • Endorsement (s 14(2)(e)): the claim must state that it is made under the Act.

The payment schedule

The Act requires (s 15(4)(b)) the respondent to provide a payment schedule within the time set by the contract or 10 business days after the claim is served, whichever is earlier. If no schedule is provided in time, the Act provides that the respondent becomes liable for the claimed amount.

When payment falls due

The Act provides (s 12(1)) that a progress payment is due on the date the contract provides, otherwise 10 business days after the earliest day the claim could have been served. Contract terms that push payment later than 20 business days after the claim are void (s 12(1B)) — that is the statutory cap on payment terms in Victoria.

Adjudication

The Victorian windows are tighter than the equivalent NSW and QLD windows — note the 10-business-day limits:

  • Schedule provided for less than the claim: apply within 10 business days after receiving the schedule (s 18(3)(c)).
  • Scheduled amount not paid by the due date: apply within 10 business days after the due date (s 18(3)(d)).
  • No schedule and no payment: give notice of intention within 10 business days after the due date (s 18(2)); the respondent then has 5 business days to provide a schedule, and you apply within 5 business days after that period ends (s 18(3)(e)).
  • A copy of the adjudication application must go to the respondent within 3 business days (s 18(5)).

The adjudicator must determine the application within 10 business days after the later of their appointment or the response deadline (s 22(4)); the parties can agree to extend up to 20 business days, and a late determination is not invalid (s 22(4B)).

Business days are not calendar days

Every timeframe above runs in business days. The Act defines a business day (s 4(1)) as a day that is not a Saturday or Sunday, not a Victoria-wide public holiday, and not within 22 December to 10 January inclusive. That Christmas shutdown window is the longest of the east-coast Acts — the statutory clock stops for nearly three weeks over summer, so count business days carefully either side of it.

Key timeframes at a glance

StepTimeframeSource
Serve payment claimFrom the last day of the named month; one claim per named month unless the contract allows mores 14A(1), s 14D(1)
Latest claimDay before the latest of contract date / 6 months after practical completion / 6 months after last supplys 14C
Payment scheduleEarlier of contract time or 10 business dayss 15(4)(b)
Payment duePer contract, else 10 business days after earliest day claim could be served; terms beyond 20 business days voids 12(1), s 12(1B)
Adjudication — schedule less than claim10 business days after receiving schedules 18(3)(c)
Adjudication — scheduled amount unpaid10 business days after due dates 18(3)(d)
Adjudication — no scheduleNotice within 10 business days after due date; respondent has 5 business days; apply within 5 business days after that periods 18(2), s 18(3)(e)
Adjudicator's decision10 business days after later of appointment / response deadline; extendable by agreement up to 20 business dayss 22(4)

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.

Related

Sources

If a payment is genuinely in dispute, a deadline has already passed, or you are unsure how the April 2026 reforms apply to your contract, 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.