How do payment claims and payment schedules work in New Zealand?
In New Zealand a progress claim carries the prescribed Form 1 notice. The payer has 20 working days to give a payment schedule, or is liable for the full claimed amount. Where the contract is silent, payment is due within 20 working days, and work can be suspended after 5 working days notice.
The duties, in the library's order
| Duty | Window and section | If missed |
|---|---|---|
| Make a progress claim on the cadence the contract allows | 1 months 20(1), 17(2) | no penalty statedDisputes |
| Make every claim a valid payment claim: identify the work and state the amount | none sets 20(2) | no penalty statedDisputes |
| Attach the prescribed Form 1 notice to every payment claim | none sets 20(3)-(4); Regs r 4, Sch 1 Form 1 | a breach of contractDisputes |
| Receive a payment schedule within 20 working days of each claim, or the full amount becomes payable | 20 working dayss 22 | you are liable for the full amountDisputes |
| Make a payment schedule that identifies the claim and the scheduled amount | none sets 21 | the claim is barredDisputes |
| Be paid within 20 working days where the contract is silent | 20 working dayss 18 | you are liable for the full amountDisputes |
| Recover the amount owed if payment is not made by the due date | none sets 23, 24 | you are liable for the full amountDisputes |
| Give 5 working days notice before suspending work for non-payment | 5 working dayss 24A | no penalty statedDisputes |
What the library notes on each duty
Quoted a whole sentence at a time from the library's note on each row.
Make a progress claim on the cadence the contract allows
s 20(1), 17(2) · 1 month · no penalty stated
- End of the period the contract sets; if the contract is silent, the first part-month then monthly.
- A valid claim triggers the s22 payment schedule obligation.
Make every claim a valid payment claim: identify the work and state the amount
s 20(2) · none set · no penalty stated
- Substantive compliance suffices (George Developments Ltd v Canam Construction Ltd [2006] 1 NZLR 177).
Attach the prescribed Form 1 notice to every payment claim
s 20(3)-(4); Regs r 4, Sch 1 Form 1 · none set · a breach of contract
- Statutory requirement to accompany the claim with an outline of the adjudication process in the prescribed Form 1.
Receive a payment schedule within 20 working days of each claim, or the full amount becomes payable
s 22 · 20 working days · you are liable for the full amount
- Contract time, else 20 Working Days after the claim is served; payer liable for the full claimed amount on the due date if no schedule is given.
Make a payment schedule that identifies the claim and the scheduled amount
s 21 · none set · the claim is barred
- Not a valid schedule if this content is missing (Willis Trust Co Ltd v Green, HC Auckland CIV-2006-404-809).
Be paid within 20 working days where the contract is silent
s 18 · 20 working days · you are liable for the full amount
- Applies where the contract is silent on the due date; the payer becomes liable on that date.
Recover the amount owed if payment is not made by the due date
s 23, 24 · none set · you are liable for the full amount
- On or after the due date, recoverable as a debt plus actual and reasonable costs; also triggers a notice of intention to suspend work.
Give 5 working days notice before suspending work for non-payment
s 24A · 5 working days · no penalty stated
- Suspension permitted, without breach, once the amount is still unpaid 5 WD after the notice; an EOT follows.
What this page is, and is not
It is the section text this library holds for New Zealand's Construction Contracts Act 2002 (NZ), NZS 3910:2013 and Health and Safety at Work Act 2015, with the window and the consequence. The NZS 3910:2023 rows are read from secondary summaries of the draft, not the published text. It is not legal advice, and it is not a substitute for reading the Acts, the contract you signed and any special conditions.
These pages set out the duties the library holds for a New Zealand job.
No library of law is complete, and Demiton never says this one is. An obligation the library does not hold, and you did not add, is not protected. You can add your own to any job.