Serving a security of payment payment claim in NSW
SOPA payment claims are the statutory mechanism for interim cash flow in construction contracts. A valid claim triggers the respondent's obligation to provide a payment schedule within strict time limits; failure to do so creates a statutory debt.
This is an 8-step workflow for serving a payment claim under s 13 of the Building and Construction Industry Security of Payment Act 1999 (NSW), covering reference date, content, service, and the pathway to adjudication.
Before you start
- A construction contract (written or oral) within the Act
- Construction work or related goods and services performed
- Reference date identified under the contract or s 8(2)
- Records of work done, variations, and prior claims available
The workflow
Confirm jurisdiction and scope
Confirm the contract is a construction contract for construction work or related goods and services under ss 4 and 5, and that the Act applies (excluding excluded contracts under s 7).
Identify the reference date
Identify the reference date under the contract or, if silent, the last day of each named month. Under amendments, reference dates can be created after termination.
Calculate the claimed amount
Calculate the progress claim including completed work, approved variations, and any delay or disruption costs permitted by the contract and the Act.
Draft the payment claim
Draft the payment claim identifying the work, stating the claimed amount, and including the endorsement “This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 (NSW)”.
Serve the claim validly
Serve the payment claim in accordance with the contract or the Act's service provisions. Preserve evidence of service (courier receipts, email delivery reports).
Monitor for payment schedule
Monitor for the respondent's payment schedule within 10 business days (or earlier if the contract prescribes). Review any withholding reasons advanced.
Pursue statutory debt or adjudication
If no payment schedule is provided or the scheduled amount is disputed, pursue a statutory debt in court under s 15 or lodge an adjudication application under s 17 within statutory windows.
Enforce or adjudicate determination
Enforce any judgment debt or adjudication determination through filing as a judgment and garnishee or charging orders. Manage stay applications and any Supreme Court judicial review.
What you will have at the end
A valid payment claim served under the NSW SOPA that triggers the respondent's payment schedule obligation and preserves the claimant's rights to adjudication and enforcement.
Common issues
- Claim served without the statutory endorsement where required
- More than one claim served for a single reference date
- Service method not compliant with the contract or the Act
- Reference date misidentified, invalidating the claim
- Adjudication lodged outside the statutory window
Run this workflow on a real matter
Quillio identifies the correct reference date, drafts the claim with statutory endorsement, and diarises each SOPA deadline. See /practice-areas/commercial-lawyers or start a free trial.
This workflow is a general guide. SOPA regimes vary materially between jurisdictions; this workflow focuses on the NSW Act.
Try this workflow with Quillio.
Quillio can run this workflow on a real matter, with citations to current AU authority on every step. The free trial requires no sales call.
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