What must a Queensland payment schedule include?

Pay in full or give a schedule

The QBCC says a respondent must respond to every payment claim under the Building Industry Fairness (Security of Payment) Act 2017. There are two ways: pay the full amount claimed by the due date, or give a payment schedule and pay the amount proposed, if any, by the due date. A schedule only needs to be given if you do not agree with the amount and intend to pay a different or lesser amount.

These are the response duties for a contract covered by Chapter 3 of the BIF Act. Section 61 excludes certain contracts, including direct domestic building work for a resident owner's home. Establish coverage before applying the schedule duty.

Sources[1][4]

What the schedule must include

It must be written, identify the payment claim it responds to, state the amount, if any, you intend to pay, and state all reasons for paying less or withholding payment. The QBCC says it is really important to list every reason, because if the claimant disputes the schedule and you have not set out a reason, you may lose your right to respond in some cases.

Reasons the QBCC gives include a claim given incorrectly, such as on the wrong reference date or without required information; a claim not intended for you; withholding a retention amount; disagreeing with the amount; and other contractual performance issues. A schedule records what you will pay and why. It does not decide whether a reason is valid, which is a contract and legal question.

Sources[1][4]

Three clocks

Do not mix these up.

Sources[1][2][4]

Template and diary workflow

The workflow is a recommendation. On the day a claim arrives, record the date given, the claim number and the amount. Diary the schedule deadline and the due date separately, using the Act's meaning of business day. Check the claim against the work done, list every reason with its evidence, send the schedule and record how and when, then pay the scheduled amount by the due date and record that too.

PAYMENT SCHEDULE

Date given: [DD/MM/YYYY]
To (claimant): [name, address]
From (respondent): [name, ABN, address]
Contract: [reference, date, site address]

1. PAYMENT CLAIM THIS RESPONDS TO
Claim no. [00] dated [DD/MM/YYYY], given to me on [DD/MM/YYYY], for $[amount]

2. SCHEDULED AMOUNT
Amount I intend to pay: $[amount, or nil]
To be paid by the due date: [DD/MM/YYYY]

3. REASONS
I propose to pay less than the amount claimed, or to withhold payment, for the following reasons. All reasons are set out here.
Reason 1: [item or claim line, amount, why, supporting documents]
Reason 2: [ ]

Signed: ____________________   [Name]

DIARY (internal)
Claim received: [DD/MM/YYYY]
Schedule deadline (15 business days, or earlier under contract): [DD/MM/YYYY]
Schedule sent: [DD/MM/YYYY] by [method]
Payment due date: [DD/MM/YYYY]
Scheduled amount paid: [DD/MM/YYYY]

Sources[1][2]

Common questions

What is a valid payment schedule?

The QBCC says a payment schedule is a written document that must identify the payment claim it responds to, state the amount, if any, you intend to pay, and state all reasons for paying less or withholding payment. It must be given within 15 business days after the claim, or earlier if the contract says so.[1][4]

How long should a subcontractor wait to get paid in QLD?

For a covered Queensland contract, use the payment due date in the contract or, if none is stated,10 business days after the claim is given. Certain QBCC Act maximum-term rules can invalidate a longer contract term, so check the rule for your contract type.[2][4]