How do I make a WA security of payment claim?

Which Act applies

WA has a 2021 Act regime and an older Construction Contracts (Former Provisions) Act 2004 regime. Use the regulator's guidance to establish which applies to your contract date before using this template. The rules and template here concern the 2021 Act only.

The Act applies on both privately funded and government funded projects. A construction contract is defined broadly and covers residential, commercial, infrastructure and engineering work, including installation of services such as electricity, gas, water, heating and ventilation.

Sources[1]

What is excluded

The fact sheet lists these excluded contracts: operational mining construction works, fitting out a ship or watercraft, contracts directly with homeowners for home building works valued at $500,000 or less, direct employee and employer arrangements, certain loan, guarantee or insurance contracts with recognised financial institutions or others, work or supply for a job outside WA, and contracts where the work payable is not calculated by reference to the value of the work completed.

That does not mean every homeowner contract is covered or excluded. The exclusion described is for direct homeowner home building contracts valued at $500,000 or less, so check the value and parties before relying on the Act.

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Claim content and timing

Contractors can claim progress payments once a month for works or supply, or more often if the contract provides, even if the contract is oral, written or absent, or says the contractor cannot claim progress payments. They can also claim final payments under the contract or, if it has none, the Act's default rules.

The respondent must pay in full by the due date or give a payment schedule. The fact sheet says a respondent who fails to give a schedule within 15 business days, or any shorter period under the contract, is liable for the full amount claimed. A business day excludes weekends, public holidays and 22 December to 10 January inclusive. This guide gives no other deadlines because the fact sheet does not.

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Claim template

This is an original layout. The fact sheet requires the amount, the items and quantities and the statement that the claim is made under the Act, and prescribes no wording, so the full Act name is used.

PAYMENT CLAIM No. [00]
Date: [DD/MM/YYYY]

This is a payment claim made under the Building and Construction Industry (Security of Payment) Act 2021.

Claimant: [name, ABN, address]
Respondent: [name, address]
Contract: [reference, date entered into, site address]

Items and quantities of work or supply claimed
Item | Description | Quantity | Rate | Amount
[ ] | [ ] | [ ] | $[ ] | $[ ]

Amount to be paid: $[total]

Payment details: [bank details or payment link]

Signed: ____________________   [Name]

CHECK BEFORE SENDING
[ ] Correct Act confirmed for this contract date and parties
[ ] Not a direct homeowner contract for home building works valued at $500,000 or less
[ ] Contract terms on how and when to give claims followed
[ ] Date and method of giving the claim recorded

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Common questions

What is a security of payment claim?

In Western Australia it is a payment claim under the Building and Construction Industry (Security of Payment) Act 2021. It specifies the amount to be paid, describes the items and quantities of work or supply and states that it is made under the Act.[1]

What does sopa apply to?

In WA, confirm whether your contract is governed by the 2021 Act or the former 2004 Act. The 2021 Act covers many construction and related-supply contracts, with exclusions including direct homeowner home building contracts valued at $500,000 or less.[1]