Security of Payment (NSW)

The Building and Construction Industry Security of Payment Act 1999 (NSW) gives contractors and subcontractors a fast, enforceable right to progress payments: serve a payment claim, the respondent replies with a payment schedule, payment falls due, and if it is short or unpaid you can take it to adjudication. Retention money is protected on top.

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A practical, NSW-only guide to getting paid under the security of payment regime — the payment-claim mechanism, the statutory clock, adjudication, and retentions — with each step tied back to the section of the Act it comes from.

NSW only. This covers the Building and Construction Industry Security of Payment Act 1999 (NSW). Other states and territories have their own security of payment Acts with different timeframes.

What the Act does

The security of payment regime gives anyone who carries out construction work, or supplies related goods and services, under a construction contract in NSW a statutory right to progress payments — regardless of what the contract says about payment s 8, Building and Construction Industry Security of Payment Act 1999 (NSW) (as of 8 July 2026). It exists to keep cash moving down the contracting chain so subcontractors and contractors are not forced to fund a project out of their own pocket while they wait to be paid.

The party claiming payment is the claimant; the party who owes it is the respondent. The Act sets out a strict sequence of steps and deadlines. Miss a deadline and you can lose the right the Act gives you — which is why every timeframe on these pages links to the section it comes from and carries an “as of” date.

The mechanism at a glance

Every progress payment follows the same statutory path:

  1. Reference date — the date, set by the contract or the Act, on and from which a payment claim can be made s 8, Building and Construction Industry Security of Payment Act 1999 (NSW) (as of 8 July 2026).
  2. Payment claim served — the claimant serves a compliant payment claim on the respondent s 13, Building and Construction Industry Security of Payment Act 1999 (NSW) (as of 8 July 2026).
  3. Payment schedule due — the respondent must reply with a payment schedule stating how much they will pay and why, within the statutory time s 14, Building and Construction Industry Security of Payment Act 1999 (NSW) (as of 8 July 2026).
  4. Payment due — the scheduled (or claimed) amount falls due for payment s 11, Building and Construction Industry Security of Payment Act 1999 (NSW) (as of 8 July 2026).
  5. Adjudication window — if the claim is short-paid or unpaid, the claimant can apply for adjudication within the statutory window s 17, Building and Construction Industry Security of Payment Act 1999 (NSW) (as of 8 July 2026).

On top of progress claims, retention money withheld from your payments is protected — including trust-account requirements — and has its own release milestones tied to practical completion and the defects liability period.

On timeframes: the exact number of days at each step is set by the Act (and can be shortened by your contract). The guides and calculators below show and cite each one, but any date that will drive a real action on a live claim must be confirmed against the current Act text with a construction lawyer. TODO: counsel-verify all day-counts before go-live.

Guides, tools & templates

Everything in the security of payment cluster, grouped by type. Pages marked “coming soon” are being written — check back, or use the free contract check in the meantime.

Guides

Security of Payment Act NSW, explainedWhat the Act is, who it protects, and the right to progress payments.How to make a payment claim (NSW)Requirements of a valid payment claim, reference dates, and timing.Payment schedules (NSW)What to do when you get a short payment schedule — or none at all.Adjudication (NSW)When you can adjudicate, the timeframes, and what an adjudicator decides.Retention money (NSW)Trust-account rules, defects liability, and release milestones.

Tools

SOPA deadline calculator (coming soon)Payment schedule, payment, and adjudication dates — business-day aware.
Retention release tracker (coming soon)Release milestone dates from practical completion and defects liability.
Adjudication timeframe calculator (coming soon)Application, response, and determination windows from a trigger date.

Templates

Payment claim template (NSW) (coming soon)Compliant payment-claim body with the required statements and endorsement.
Adjudication application checklist (coming soon)What an adjudication application must include, in sequence.

Product

SOPA claim tracking (coming soon)How collect.ac tracks each claim through the statutory state machine.
Retention monitoring (coming soon)How collect.ac watches every retention and its release milestones.
How collect.ac meets the Act (coming soon)Feature-by-feature map of each mechanism of the Act to the product.

Questions

Who does the Security of Payment Act protect?

It protects anyone who carries out construction work or supplies related goods and services under a construction contract in NSW — typically subcontractors and head contractors chasing payment. The party claiming payment is the claimant; the party who owes it is the respondent.

What is a payment claim?

A payment claim is a document a claimant serves on a respondent asking to be paid for construction work done or goods and services supplied, on or from a reference date. The Act sets out what it must contain and how it is served.

What happens if the respondent does not reply with a payment schedule?

A respondent who receives a payment claim must reply with a payment schedule within the statutory time. If they do not, and do not pay, the claimant can pursue the full claimed amount — including through adjudication or the courts. Confirm the exact timeframe for your claim with a construction lawyer.

What is adjudication?

Adjudication is a fast, statutory dispute process: an independent adjudicator decides how much is payable on a payment claim, usually within weeks rather than the months a court case takes. An adjudicator’s determination is enforceable.

Does this apply outside New South Wales?

No. This covers the NSW Act only. Every other state and territory has its own security of payment legislation with different timeframes and requirements.

Is this legal advice?

No. This is general information. Security of payment deadlines are strict and a missed one can forfeit your rights — verify your position with a qualified construction lawyer before acting on a live claim.

collect.ac tracks the SOPA clock on every claim and retention so you never miss a statutory deadline.

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Not legal advice. This is general information about the Building and Construction Industry Security of Payment Act 1999 (NSW), not legal advice about your situation. Statutory deadlines are strict and a missed one can forfeit your rights. Confirm every date and requirement with a qualified construction lawyer before acting on a live claim.