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$vuetify.icons.faPhone1300 650 620

Security of Payment - Responding to a payment claim

Have you received a payment claim made under the Security of Payment Act? Do you know how to respond?

If you receive a progress payment claim that states it is made under the Building and Construction Industry (Security of Payment) Act 2021 (WA) (SOP Act), it is advisable to provide a ‘payment schedule’ in response.  This is particularly important if you do not believe the claim is payable in full.

What is a payment schedule?

The payment schedule sets out whether you agree with and intend to pay a payment claim.   It is also your opportunity to provide all reasons for disputing all or part of a payment claim.

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

  • the payment claim to which it relates
  • the ‘scheduled amount’, which is the amount you agree to pay and
  • the reasons for withholding any or all amounts claimed.

Why provide a payment schedule?

If no payment schedule is provided:

  • the claim will be payable in full
  • you will lose the opportunity to respond if the claimant makes an adjudication application or commences proceedings in court in relation to the claim and
  • you will not be permitted to make an application for a review of the adjudication.

When should a payment schedule be provided?

A payment schedule must be given to the claimant within 15 business days from the date of the claim, or earlier if required by the contract.

If you pay the claim in full by the due date you do not need to provide a payment schedule.

What is the due date for payment?

The claimed or scheduled amount must be paid within the required timeframes .  There are different payment timeframes, depending on the type of work and the contractual relationship.

Unless the contact is excluded under the SOP Act, payment claims for any work carried out by builders or trades in relation to a dwelling, must be paid by:

  • the timeframe specified in the contract or
  • if the contract does not specify a timeframe, within 10 business days of the claim date.

For work that is not home building work, unless the contract specifies an earlier date:

  • principals must pay head contactors within 20 business days of the claim date and
  • subcontractors must be paid within 25 business days of the claim date.

What if payment is not made?

If the claimed or scheduled amount becomes overdue, the claimant can charge you interest up to the date of payment.  They can also suspend the works.

In addition, the claimant will have the right to either apply for adjudication or commence proceedings in court to recover the outstanding amount. 

What if the claimant disagrees with the payment schedule?

If the claimant disagrees with your payment schedule they can apply for adjudication.

Further information

HIA has a range of other security of payment resources available, including:

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

Email us

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