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VIC Security of Payment Act

Get paid for your construction work in Victoria

The Building and Construction Industry Security of Payment Act 2002 (Vic) gives anyone who carries out construction work, or supplies related goods and services, on a project in Victoria a legal right to progress payments. It also gives you a fast, low-cost way to recover what you’re owed.

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

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What changed on 15 April 2026

Victoria’s Act was overhauled, and the new rules also apply to contracts signed before that date:

  • Reference dates are gone. You can now claim at the end of each month you work.
  • The “excluded amounts” rules have been removed, so variations and other disputed items are no longer automatically left out of adjudication.
  • There’s a new process for claiming the release of performance security (bank guarantees and retentions).
  • Contract terms that set payment later than 20 business days after a claim have no effect.

Who the Act covers

The Act covers construction contracts for work in Victoria, whether written or verbal. That includes head contractors, subcontractors, suppliers and consultants. It does not generally cover a builder’s domestic building contract with a home owner. Subcontractors working on home building jobs are still covered.

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 serve one claim per month.
  • Time limit: you can serve claims up to 6 months after practical completion of all the work, or a later date if your contract allows it.
  • Payment schedule: the respondent has 10 business days after receiving your claim to serve a payment schedule (or less if the contract says so). If they don’t, they become liable for the full amount claimed.
  • Due date: payment is due when the contract says. If the contract is silent, it’s 10 business days after the claim could first be served. A contract can’t push the due date beyond 20 business days after the claim.

Applying for adjudication

Adjudication decides whether you’re entitled to be paid, how much, when, and whether interest applies. You can apply if:

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

You must serve a copy of the application on the respondent within 3 business days after you lodge it. A respondent who didn’t serve a payment schedule can’t put a defence at adjudication.

A winning application depends on getting the timing right, choosing the right nominating authority, and putting together a strong written submission backed by solid evidence. We prepare, lodge and serve the whole application for you, and handle any requests for further submissions.

Apply for adjudication →

After the determination

If the adjudicated amount isn’t paid, you can get an adjudication certificate and file it in court as a judgment debt. Then the usual enforcement options become available. We handle every step from claim to enforcement and debt collection.

Debt recovery in Victoria

If the debt has to go to court, the Magistrates’ Court hears claims up to $100,000. Larger claims go to the County Court or the Supreme Court.

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.