Building dispute payments - security of payment

You can recover progress payments for goods and services supplied for building or construction work . The person claiming is the claimant.

Progress payments

You can claim progress payments even if the contract:

  • was not written
  • did not provide for progress payments
  • provided for a single payment at the completion of the work
  • contains a "paid when paid" clause.

A progress payment becomes due and payable:

  • on the date nominated in the construction contract, or
  • the last day of the month in which construction work was carried out (or the related goods and services were first supplied).

Payment claim

You can ask for a progress payment if you do building or construction work or supply goods or services under a construction contract.

You can make a payment claim which must:

  • identify the works or services to which the progress payment relates
  • state the amount of the progress payment
  • state that the payment claim is made under the Building and Construction Industry Security of Payment Act 2009. For example by using words like, "this is a claim made under the Building and Construction Industry Security of Payment Act 2009".

Payment schedule

A person who has a payment claim served on them may reply to the claim by providing a payment schedule to the claimant. This person is the respondent.

A payment schedule:

  • must identify the payment claim to which it relates
  • must include the amount of the payment, if any, that the respondent proposed to make (the scheduled amount)
  • give all reasons if the scheduled amount is less than the amount claimed in the payment claim.

If the respondent does not respond with a payment schedule within the required time, the whole amount claimed becomes payable. Make an application to have the claimed amount become a judgement debt.

After the claimant receives the payment schedule they must decide whether to:

  • accept the Respondent's offer to pay and their reasons for this offer within the prescribed time, or
  • have their claim adjudicated.

The adjudicator may determine that the Respondent needs to make a payment to the Claimant. That amount must be paid within 5 business days of the date of the determination, unless the adjudicator has specified another date.

Read more about the adjudication process

Non-payment

If the Respondent fails to pay the whole or part of the adjudicated amount, the Claimant may then ask the Nominating Authority to provide an adjudication certificate. This can be taken to a court registry to be enforced by the court staff as a judgement debt.

The Claimant also has the right to serve a notice on the Respondent stating that they will suspend carrying out of construction work (or supplying goods or services) under the construction contract.

Related information

Updated: 26 May 2020