Payment Claim

Who is the claimant?

The claimant is the person who has carried out construction work or supplied related goods and services under a construction contract. For example:

  • Subcontractors claiming against contractors
  • Contractors claiming against principals
  • Suppliers claiming against subcontractors, contractors, and principals
  • Consultants claiming against subcontractors, contractors and principals
  • Claimants can include architects, designers, surveyors, engineers, landscapers, decorators.

The construction work or supply must be:

  • Carried out or used in Queensland
  • Carried out under a written or oral contract. If oral, the claimant must show that a contractual arrangement exists eg: accepted quote, work order.
  • Carried out by a licensed contractor or a contractor who is not required to hold a BSA licence (eg: suppliers, electricians).

What is a payment claim?

The payment claim is the document delivered (served) by the claimant to the person they have contracted (respondent) claiming payment for work done. The payment claim must:

  • Be in writing
  • Clearly state the name and contact details of the respondent
  • Clearly identify and give details of the work undertaken or goods or services provided
  • State the full amount owing including GST, interest or retentions
  • Contain the words “This is a payment claim made under the Building and Construction Industry Payments Act 2004”

The payment claim can be in the same format as your normal tax invoice or monthly statement provided it contains all of the above details.

A sample of a payment claim can be found on page 7 of the BCIPA Information Kit at: bcipa.qld.gov.au.

When can I make a payment claim?

  • A payment claim can be made when a progress or lump sum payment falls due or is overdue as set out in the contract or
  • If no such date is provided in the contract, the last day of each calendar month, known as the reference date.

The claimant can not serve more than 1(one) payment claim for each contract in relation to each reference date (eg: if the contract does not specifiy the reference date, the claimant can not serve more than 1(one) payment claim per month). The outstanding payments cannot be more than 12 months old from the date the work was completed.

How do I serve my payment claim on the respondent?

The claimant can serve a payment claim on the respondent in the following ways:

  • Delivering to the respondent personally
  • Post to the respondent’s last known place of business or residential address
  • Fax to the respondent’s last known place of business or residential address
  • If the respondent is a company or body corporate, the payment claim can be delivered, posted or faxed to its head office, registered office or principal office
  • Emails may not be deemed to be proper service unless the contract states that email can be used or there is a detailed history of email communication between the parties.

It is important that evidence of service is kept, such as fax transmission reports or notes of time, date and place of delivery. You must satisfy the adjudicator that all documents are served correctly.

When is payment due?

If you have a construction contract that provides a date or a time period for payment, then you are entitled to be paid in accordance with the contract.

If there is no contractual provision that specifies due date for payment, and the respondent fails to provide you with a payment schedule, then you are entitled to be paid 10 business days after you serve the respondent with the payment claim.

Within this time period for payment, the respondent must provide payment or a payment schedule.