How do I serve a NSW security of payment claim?

Required content and monthly timing

Section 13 requires the work or supply, claimed amount and Act statement. A head contractor serving a claim on a principal must also attach the approved supporting statement relating to that claim.

A claim can be served from the last day of the month work or supply first occurred, and each later month, or an earlier date allowed by the contract. Generally only one claim may be served in a named month unless the contract provides otherwise. Unpaid amounts from a previous claim can be included.

The outside limit is the later of the contract period or 12 months after the work in the claim was last carried out or the related supply was last made. Check transitional rules for an older contract and get advice on disputed eligibility or deadlines.

Sources[1]

How to serve it

Section 31 permits personal delivery, lodging it during normal office hours at the respondent's ordinary place of business, posting it there, or email to an address the person has specified for service of that kind of document. A contract may also provide a service method; regulations may authorise others.

Do not assume a general contact email is an address specified for service. Keep the service provision, address used, sent copy and delivery evidence. The Act treats a document posted to the ordinary place of business as served when received there.

Sources[2]

Payment dates are a separate clock

Section 11 distinguishes non-exempt contracts from exempt residential construction contracts. Establish which category applies before entering the due date.

Sources[3]

Claim and service log

This original layout is a working aid. Use the correct legal parties, complete each item and attach any required supporting statement. It does not resolve contract eligibility or disputed valuation.

NSW PAYMENT CLAIM
This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999.

Claimant: [legal name, ABN, address]
Respondent: [legal name, address]
Contract and site: [ ]
Work or related goods/services: [items, quantities, period or stage]
Amount claimed: $[ ]
Supporting statement: [approved form attached where required]

SERVICE LOG
Permitted claim date and basis: [ ]
Outside limit checked: [ ]
Method authorised by section 31 or contract: [ ]
Service address and its authority: [ ]
Date sent/delivered: [ ]
Date received and evidence: [ ]
Payment due date and basis: [ ]

Sources[1][2]

Common questions

What is a payment claim?

For the current NSW Act, it identifies the work or related supply, states the amount claimed and says it is made under the Act. It is served on the person liable under the construction contract, with a supporting statement where required.[1]

What are the payment terms for the NSW Security of Payment Act?

For non-exempt contracts, section 11 sets 15 business days for principal-to-head-contractor payments and 20 for payments to subcontractors, subject to an earlier contract date. For an exempt residential construction contract, use the express contract due date or, if none,10 business days.[3]