Payment Schedules, Certifications, Claims

The Most Dangerous Document in Construction

Under the Security of Payment Act (SOPA) legislation exists in every Australian state. It is designed to keep cash flowing down the supply chain.

The Process

1. Payment Claim: The Builder submits a valid claim (invoice) on the "Reference Date" (usually the 25th or end of month).
2. Payment Schedule: The Client (or Superintendent) has a strict window (usually 10 business days) to respond with a "Payment Schedule" if they intend to pay less than the claimed amount.

The Trap

If the Client fails to issue a Payment Schedule within the legislative timeframe, they become liable for the full amount claimed, regardless of whether the work was done or not. The builder can then seek a summary judgment in court.

Builder's Note: Ensure your invoices explicitly state they are "made under the Security of Payment Act" to trigger these protections.

Validity & Timelines (General Guidance)

• Reference Date: Claim must be served on or after the contractual reference date.
• Content: Identify the work, amount claimed, and state it is made under SOPA (jurisdiction wording varies).
• Service: Follow contract service provisions (email/post/portal) and retain evidence of receipt.
• Adjudication: If scheduled for less or no schedule is served, lodge adjudication within the statutory window; strict timeframes apply by state.

What a Good Payment Claim Looks Like (Builder View)

A strong claim is easy to assess. It reduces friction with the Superintendent/Principal and improves your odds if the matter goes to adjudication.

• Clear scope referencing: tie items back to contract scope, drawings/specs, and approved variations.
• Measured quantities: show how you calculated the claimed value (rates, quantities, % complete, milestones).
• Evidence bundle: photos, delivery dockets, subcontractor claims, test sheets, and progress mark-ups.
• Variation separation: separate base contract progress from variations (approved vs pending) so assessment is clean.

Common Builder Mistakes (That Cost Real Money)

• Invalid service: sending to the wrong email/person, or not following contract service rules.
• Vague descriptions: “progress claim – stage 4” with no backing is an invitation to be assessed down.
• Bundling disputes: mixing progress, variations, and delay costs into an unreadable claim.
• Missing time bars: late notices for variations/delays can undermine what you can claim later.

Payment Schedules: What the Other Side Must Do

In general terms, if the respondent intends to pay less, a payment schedule must explain why and how the scheduled amount was calculated. Treat the schedule as a dispute document: it defines what can be argued later in many SOPA regimes.

Builder Operating System (Simple, Repeatable)

1. Weekly capture: photos, measured progress, subcontractor claims, delivery dockets.
2. Claim draft early: assemble the claim before the reference date so you can sanity-check it.
3. Serve properly: follow the contract service provisions and keep proof of service.
4. Calendar the deadlines: schedule due date, adjudication windows, and any follow-up notices.

Note: Timeframes and required wording vary by state and by contract. Use this as operational guidance and confirm the rules that apply to your jurisdiction and agreement.