All contractors (head contractor, subcontractor, supplier, plant and equipment and consultant) engaged in construction work or supply related goods or services under a construction contract, are entitled to recover all progress payments that are due, including retention monies and final payments. 

What is a payment claim under the NSW Building and Construction Industry Security of Payment Act 1999 (NSW) (“SOPA”)? 

A payment claim is a progress claim (document making a claim for money). 

How to make a claim?

For contracts entered into on or after 21 October 2019. There are two ways to take if you have not received a payment schedule (written response to the payment claim) within 10 business days after serving a payment claim or have not been paid by the due date.

1. To commence a payment claim under SOPA, there must be a written Payment Claim on the party liable to pay for construction work or related supply goods and services under a construction contract (either written or oral).

2. Apply for adjudication.

Be mindful of time limits for making a progress payment claim.

A person under a construction contract who has carried out construction work or provided
goods and services is entitled to receive a progress payment pursuant to section 8 of the Act.

The information on this post relates to the laws in New South Wales Building and Constructions Industry Security of Payment Act 1999 (NSW) (“the Act”) colloquially known as the Security for Payment Act or ‘SOPA’.