page loader

NSW Security of Payment Act

Get paid for your construction work in NSW

The Building and Construction Industry Security of Payment Act 1999 (NSW) gives anyone who carries out construction work, or supplies related goods and services, a legal right to progress payments. It also gives you a fast, low-cost way to recover money you’re owed without going to court.

SECURITY OF PAYMENT Services prepares and serves payment claims and adjudication applications for contractors, subcontractors and suppliers across NSW, with a 98% success rate.

Start a claim →

Problems our clients face

  • Invoices left unpaid, or paid late again and again
  • Payments cut back with no proper reason
  • Retention money held well after it should have been released
  • Variations disputed or ignored
  • Being told “the money’s coming” while the job moves on

Who the Act covers

The Act covers construction contracts for work carried out in NSW, whether the contract is written or verbal. That includes head contractors, subcontractors and suppliers of related goods and services. Since amendments that started in October 2019, it also covers residential building work for home owners.

Key time frames

  • Payment claims: you can serve a claim from the last day of each month in which you did the work, or earlier if your contract allows it. You can generally serve one claim per month.
  • Time limit: a claim must be served within 12 months after the work was last carried out, or within any longer period your contract allows.
  • Payment schedule: the respondent has 10 business days after receiving your claim to reply with a payment schedule (or less if the contract says so). If they don’t, they become liable for the full amount claimed.
  • Due date: unless the contract sets an earlier date, payment is due 15 business days after the claim for a head contractor claiming from a principal, and 20 business days for a subcontractor.
  • Head contractors must attach a supporting statement to any payment claim served on the principal.

Applying for adjudication

You can apply for adjudication if:

  • the payment schedule offers less than you claimed — apply within 10 business days after you receive it;
  • the respondent doesn’t pay the scheduled amount — apply within 20 business days after the due date; or
  • no payment schedule is given and the claim isn’t paid — first serve a notice of intention within 20 business days after the due date. The respondent then has 5 business days to provide a schedule, and you apply within the 10 business days after that.

The deadlines are strict, and missing one can cost you your rights. We prepare and lodge the application with an authorised nominating authority and serve it on the respondent for you.

Apply for adjudication →

Debt recovery in NSW

If the debt has to go to court, the claim size decides which court hears it:

  • Local Court (Small Claims Division) for claims up to $20,000
  • Local Court (General Division) for claims up to $100,000
  • District Court for claims up to $1.25 million
  • Supreme Court for claims above $1.25 million

The Contractors Debts Act 1997 (NSW) may also let you recover money directly from a principal who owes money to the party that owes you.

Check you’re entitled to claim

  • You carried out construction work, or supplied related goods or services, in NSW
  • You have a contract (written or verbal) with the party you’re claiming from
  • The work was last done within the past 12 months, or your contract allows a later claim
  • You haven’t already served a claim for this month’s work

Useful links

Need help?

Call or contact us and we’ll walk you through your options.

This page is general information, not legal advice. Timeframes depend on your contract. Last reviewed October 2026.