Security of Payment WA — A Subcontractor's Plain-English Guide
By Cal Crane — founder, TradeControl; Operations Manager, Barzen Projects
General information only — not legal advice.
In WA you serve a monthly payment claim that states it is made under the Act, the respondent has up to 15 business days to give a payment schedule, payment to a subcontractor falls due within 25 business days, and adjudication applications run to a 20-business-day window from when you first become entitled.
The Act
The Building and Construction Industry (Security of Payment) Act 2021 (WA) is in force — the consolidation referenced here is as at 1 February 2024. It replaced the Construction Contracts Act 2004 regime for new contracts, and it applies to contracts entered into after its staged commencement: August 2022, February 2023 and February 2024 stages. The first question in WA is always which regime your contract sits under — a contract signed before the relevant commencement stage may still be governed by the 2004 Act.
Serving a payment claim
The Act provides (s 23) for monthly claims — a payment claim may be made on or after the last day of the named month in which construction work was first carried out.
- Latest non-final claim: the later of the date set by the contract or 6 months after the work was last carried out (s 23).
- Final claim: the latest of the contract date, 28 days after the end of the last defects liability period, or 6 months after completion (s 23).
- The claim must state that it is made under the Act (s 24).
The payment schedule
The Act requires (s 25) the respondent to give a payment schedule within the time set by the contract or 15 business days after the payment claim is made, whichever is earlier.
When payment falls due
- Principal to head contractor: due 20 business days after the claim (s 20(1)).
- Payment to a subcontractor: due 25 business days after the claim (s 20(1)).
- Home building work: as the contract provides, otherwise 10 business days (s 20(3)).
- The contract can only shorten these periods — it cannot stretch them (s 20(2)).
Adjudication
The Act provides (s 28(1)) that you become entitled to apply when you have not been paid in full by the due date, or the payment schedule is for less than the claim or proposes no payment. The application must be made within 20 business days after first becoming entitled (s 28(4)).
Where no payment schedule was given, there is a prerequisite (s 28(2)): you must give the respondent a notice of intention within 20 business days after the due date, and the respondent then has 5 business days to provide a schedule.
The adjudicator must determine the application within 10 business days after the response is given, the response deadline, or their appointment (s 37); extensions are capped at 20 business days in total, and a late determination is not invalid.
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, Sunday or public holiday, and not within 22 December to 10 January inclusive. The statutory clock stops for that Christmas window, so a due date or application deadline either side of the summer break can land far from where a calendar count puts it. Count business days, not calendar days.
Key timeframes at a glance
| Step | Timeframe | Source |
|---|---|---|
| Make payment claim | Monthly, on or after last day of named month; latest non-final — later of contract date or 6 months after work last carried out; final — latest of contract date / 28 days after end of last defects liability period / 6 months after completion | s 23 |
| Payment schedule | Earlier of contract time or 15 business days | s 25 |
| Payment due — subcontractor | 25 business days after claim | s 20(1) |
| Payment due — head contractor | 20 business days after claim | s 20(1) |
| Adjudication application | 20 business days after first becoming entitled to apply | s 28(4) |
| Adjudication — no-schedule prerequisite | Notice of intention within 20 business days after due date; respondent has 5 business days to provide a schedule | s 28(2) |
| Adjudicator's decision | 10 business days after response given / response deadline / appointment; extensions capped at 20 business days total | s 37 |
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
- Security of Payment NSW guide
- Security of Payment VIC guide
- Security of Payment QLD guide
- Retention money — when and how to claim it back
- Payment claim date calculator
- Day labour docket template
- Variation notice template
Sources
- Building and Construction Industry (Security of Payment) Act 2021 (WA): legislation.wa.gov.au — Building and Construction Industry (Security of Payment) Act 2021
- WA Government — Security of Payment Act: how it applies to subcontract building services: wa.gov.au/…/subcontractor-payment-disputes-security-of-payment-act/how-subcontract-building-services
If a payment is genuinely in dispute, a deadline has already passed, or you are unsure whether your contract sits under the 2021 Act or the old 2004 regime, 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.