How do I make a Northern Territory construction payment claim?

Contract terms first, implied terms second

The Act implies default terms where the contract has no written provision on that matter. For claim content it uses Schedule 1 Division 4; responding and payment timing use Division 5. Written contract terms remain subject to the Act's prohibited and overriding provisions, so reading the contract alone is not enough.

Keep your record clear about which rule you relied on: the contract's own term or the implied term. This guide is not a statutory form.

Sources[1]

Contract rule or implied default

The table compares what to look for in the contract with what the Act implies if the contract is silent. Working days are counted as working days, not calendar days.

Section 13 separately overrides a provision allowing payment more than 30 working days after a claim, reading it as requiring payment within 30 working days. That is a statutory cap, rather than a default that applies only when the contract is silent.

Sources[1]

Disputes and adjudication

Under section 8, a payment dispute arises if a claim is rejected or wholly or partly disputed, or when the amount claimed is due to be paid and has not been paid in full. Retention or security that is due and not paid or returned can also give rise to a dispute.

To apply for adjudication, a party must act within 65 working days after the dispute arises, and the first day of that period is the day after the dispute arises. This guide does not calculate a deadline for you. Take advice with your dates.

Sources[1]

Scope check and claim record

Check the Act's construction-contract scope, commencement and exclusions. Section 10A also permits qualifying high value construction contracts to use another adjudication mechanism if its conditions are met. Ask whether that affects Part 3 before relying on the ordinary adjudication pathway.

Use this claim record as our recommended workflow.

CLAIM RECORD
Contract: [reference and date]
Claim made to: [name and address]
Claimant: [your business name]
Date of claim: [DD/MM/YYYY]
Amount claimed: $[amount]

Work performed (itemised):
1. [item, location, date range, value]
2. [item, location, date range, value]

Basis for claim rule: [contract clause number OR implied Schedule 1 term]
Basis for amount: [contract sum proportion / rates / reasonable amount, with workings]
Given to the other party on: [DD/MM/YYYY] by [method]

Response received: [date, notice of dispute / payment]
Payment dispute arose: [date and reason]
Advice taken on adjudication timing: [name, date]

Sources[1]

Common questions

What is a security of payment claim?

In the NT the Act calls it a payment claim, a claim made under a construction contract. A contractor claims payment from the principal for performing its obligations, and a principal can also claim from the contractor. A claim can include a matter from a previous claim that has not been determined.[1]

What does sopa apply to?

The NT Act covers construction contracts, whether written or oral, subject to its scope, commencement and exclusions. Check section 9 and any applicable regulations. Qualifying high value contracts may also have an alternative dispute mechanism under section 10A.[1]