{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Security of Payment - Making a payment claim

If you're making a progress payment claim and want the option to use the rapid adjudication system, you must ensure the claim is compliant with the security of payment requirements.

If your construction contract is covered by the Building and Construction Industry (Security of Payment) Act 2021 (WA) (SOP Act), you have a statutory right to make progress payment claims. The first step in the prescribed claim and adjudication process is to make a compliant payment claim.

When can a payment claim be made?

You can claim a progress payment:

  • as set out in the contract; or
  • on or after the last day of the named month in which construction work was first carried out, or related goods and services were first supplied, under the construction contract; and
  • on or after the last day of each subsequent named month.

In addition, you must make your payment claim within:

  • 6 months after the completion of the work or last date of supply of the services or goods;
  • 28 days after the last defects liability period day (final claims only); or
  • an alternative period specified in the contract.

Calculating the payment claim value

Payment claims can be made for single and once-off payments, progressive and partial payments, and final payments.  The value of a payment claim must be based on either:

  • the amount calculated in accordance with the contract, for example, a pre-agreed milestone payment value; or
  • if the contract does not specify a fixed amount, the value of the work carried out or goods and services supplied up to the date of the claim.

If the payment relates to goods or services, they must become the property of the respondent upon payment.

What information is included in the claim?

A payment claim must be in writing and must set out:

  • the claimed amount;
  • a description of the work carried out, or goods and services supplied for the claimed amount;
  • a statement that the claim is made under the Building and Construction Industry (Security of Payment) Act 2021 (WA); and
  • if required, include the Homeowner’s Notice.

The claim does not need to be signed.

When is a homeowner’s notice required?

If you are carrying out residential building work for a homeowner worth over $500,000, you will also need to provide them with a copy of the Homeowner’s Notice, which is included in the SOP Regulations.

You do not need to provide the Homeowner’s Notice if:

  • you are contracting with a corporation;
  • the work is being undertaken for the purpose of a residential development business; or
  • the work is for two or more dwellings on separate lots.

What happens if the respondent disagrees with your claim?

If they don’t intend to pay your claim in full, the respondent should issue you with a ‘payment schedule’ within 15 business days of the date of the claim.  The payment schedule must set out the amount they intend to pay, plus all reasons why the amount is wholly or partly disputed.

The respondent is still required to pay you the undisputed amount within the applicable timeframe.  However, if you disagree with the payment schedule, you can apply for adjudication.

What are the consequences of non-payment?

There are specific due dates for payment of claims made under the SOP Act. If your claim isn’t paid on time you have several options, including:

  • either applying for adjudication or commencing proceedings in court;
  • charging interest; and
  • suspending the works.

To suspend the works you must:

  • give the respondent a written notice stating your intention to suspend the work in accordance with the Act; and
  • provide the respondent with at least 2 business days from the date of the notice prior to stopping work.

You will be required to start work again within 3 business days of receiving payment.

To find out more, contact HIA's Contracts and Compliance team

Email us

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!

Managing your business


 

Can’t find what you need, check out other resources that might be closer to the mark.

Explore resources

WA Addenda to Specification - Form 12

This addenda is sold separately from the WA Specification for Brick or Framed Construction document. These two items make up a set, although some buil...

WA Cost Plus Contract - Form 13D (Pack of 2)

This contract is used for residential constructions works on a cost plus basis, not a lump sum ‘fixed price’. Costs are totalled and a percentage or f...

WA Claim for Extension of Time - Form 5 (Pad of 30)

Builders wanting an extension of time for completing work will need this WA Claim for Extension of Time pad, which includes 30 sheets. This product co...

WA HBCA Lump Sum Contract - Form 16K (Pack of 2)

The WA HBCA Lump Sum Contract – Form 16J contract (pack of two) is suitable for work over $7500 and less than $500,000, which requires a written, sign...

WA Practical Completion Certificate - Form 14 (Pad of 30)

The Western Australian Certificate of Practical Completion (pad of 30) enables builders to list work that may be required following a joint pre-handov...

WA Job Quotation - Form 9 (Pad of 25)

The Western Australian Job Quotation Form (pad of 25) is suitable for sub-contractors to list their conditions. It's carbonised and individually numbe...

WA Alterations & Additions Contract - Form 38E (Pack of 2)

The WA Alterations & Additions Contract – Form 38E (pack of two) is designed specifically for use on alterations, additions and renovations over $7500...

WA Pre-Fabricated Homes Contract - Form 45C (Pack of 2)

The WA Pre-fabricated Homes Contract – Form 45C (pack of two) has been designed specifically for use with modular or transportable homes.

WA Specification Brick & Framed Construction - Form 7 (Pack of 2)

The WA Specification for Brick or Framed Construction document (pack of two) provides a detailed description of quality of materials or workmanship, w...

WA Variation to Contract - Form 1 (Pad of 30)

The WA Variation to Contract – Form 1 details changes or variations to works requiring an update to the contract between builder and owner. It can als...

WA Small Works Contract - Form 10A (Pad of 25)

The WA Small Works contract (pad of 25 and in duplicate) has been designed specifically for projects $7500 in value or less (where the Home Building C...