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Security of Payment guide
Security of Payment / Missed deadlines

What happens if you miss a Security of Payment deadline?

A missed Security of Payment window does not always cost the same thing. Across the 52 windows the library holds in the 8 Acts, it records 5 different results for a missed one: no penalty stated; you are liable for the full amount; an offence; the claim is barred; a breach of contract. Which one applies depends on the step and the state.

What the library records

  • no penalty stated: 40 of 52 windows
  • you are liable for the full amount: 7 of 52 windows
  • an offence: 2 of 52 windows
  • the claim is barred: 2 of 52 windows
  • a breach of contract: 1 of 52 windows

Every window, and what missing it costs

One row per window each Act sets, with the section and the disease the library files it under.

StateDutyWindow and sectionIf missed
New South WalesApply for adjudication within 10 business days if a claim is disputed10 business dayss 17(3)no penalty statedDisputes
Respond to an adjudication application within 5 business days5 business dayss 20no penalty statedDisputes
Make a progress claim on the cadence the contract allows1 months 13no penalty statedDisputes
Be paid within 15 business days of a payment schedule (or of the claim if none is given)15 business dayss 11(1A)no penalty statedDisputes
Be paid within 20 business days of a payment schedule (or of the claim if none is given)20 business dayss 11(1B)no penalty statedDisputes
Give notice of intention to apply for adjudication within 20 business days20 business dayss 17(2)no penalty statedDisputes
Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable10 business dayss 14(4)you are liable for the full amountDisputes
QueenslandNotify the retention trust account within 5 business days5 business daysss 35, 40A, 40Ban offenceLapsed compliance
Apply for adjudication within 30 business days if a claim is disputed30 business dayss 79(2)(b)no penalty statedDisputes
Respond to an adjudication application within 10 business days10 business daysss 82-83no penalty statedDisputes
Make a progress claim on the cadence the contract allows1 monthss 67, 75(4)no penalty statedDisputes
Be paid within 10 business days of a payment schedule (or of the claim if none is given)10 business dayss 73(1)(b)no penalty statedDisputes
Give notice of intention to apply for adjudication within 30 business days30 business dayss 99no penalty statedDisputes
Receive a payment schedule within 15 business days of each claim, or the full amount becomes payable15 business dayss 76(1), s 77you are liable for the full amountDisputes
VictoriaHave no recourse to a performance security until 5 business days after written notice of intention5 business dayss 17Hthe claim is barredMissed claims
Apply for adjudication within 10 business days of a schedule for less than the claim10 business dayss 18(3)(c)no penalty statedDisputes
Respond to an adjudication application within 5 business days5 business dayss 21no penalty statedDisputes
Make a progress claim on the cadence the contract allows1 months 14A, 14Dno penalty statedDisputes
Be paid by the contract's due date, and never later than 20 business days after the claim20 business dayss 12(1), (1B)no penalty statedDisputes
Give notice of intention to apply for adjudication within 10 business days of the due date10 business dayss 18(2)no penalty statedDisputes
Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable10 business dayss 15(4)you are liable for the full amountDisputes
Western AustraliaNotify recourse against security within 5 business days5 business dayss 57the claim is barredMissed claims
Keep trust account records for 36 months36 monthss 79(5)an offenceLapsed compliance
Apply for adjudication within 20 business days if a claim is disputed20 business dayss 28(4)no penalty statedDisputes
Respond to an adjudication application within 10 business days10 business dayss 34no penalty statedDisputes
Make a progress claim on the cadence the contract allows1 months 23no penalty statedDisputes
Be paid within 20 business days of a payment schedule (or of the claim if none is given)20 business dayss 20(1)no penalty statedDisputes
Be paid within 25 business days of a payment schedule (or of the claim if none is given)25 business dayss 20(1)no penalty statedDisputes
Give notice of intention to apply for adjudication within 20 business days20 business dayss 28(2)no penalty statedDisputes
Receive a payment schedule within 15 business days of each claim, or the full amount becomes payable15 business dayss 25(1), s 26you are liable for the full amountDisputes
South AustraliaMake one progress claim per reference date (the last day of each month if the contract is silent)1 months 4, 13(5)no penalty statedDisputes
Receive a payment schedule within 15 business days of each claim, or the full amount becomes payable15 business dayss 14(4)you are liable for the full amountDisputes
Be paid within 15 business days of the claim where the contract sets no date15 business dayss 11(1)(b)no penalty statedDisputes
Give notice of intention to apply for adjudication within 20 business days of the due date20 business dayss 17(2)no penalty statedDisputes
Apply for adjudication within 15 business days of a schedule for less than the claim15 business dayss 17(3)(c)no penalty statedDisputes
Respond to an adjudication application within 5 business days5 business dayss 20(1), (3)no penalty statedDisputes
TasmaniaMake one progress claim per reference date (the last day of each month if the contract is silent)1 months 4, 17(4)no penalty statedDisputes
Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable10 business dayss 19(2), (3)(b)you are liable for the full amountDisputes
Be paid within 10 business days of the claim where the contract sets no date10 business dayss 15(2)no penalty statedDisputes
Give notice of intention to apply for adjudication within 20 business days of the due date20 business dayss 21(4)(a), (b)no penalty statedDisputes
Apply for adjudication within 10 business days of a schedule for less than the claim10 business dayss 21(3)(a)no penalty statedDisputes
Respond to an adjudication application within 10 business days10 business dayss 23(1), (2), (6)no penalty statedDisputes
Australian Capital TerritoryMake no more than one progress claim per calendar month1 months 15(4), (6)no penalty statedDisputes
Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable10 business dayss 16(4)you are liable for the full amountDisputes
Be paid within 15 business days of the claim15 business dayss 13(1)no penalty statedDisputes
Give notice of intention to apply for adjudication within 20 business days of the due date20 business dayss 19(2)no penalty statedDisputes
Apply for adjudication within 10 business days of a schedule for less than the claim10 business dayss 19(3)(b)no penalty statedDisputes
Respond to an adjudication application within 7 business days7 business dayss 22(1), (3)no penalty statedDisputes
Northern TerritoryReceive a notice of dispute, and payment of the undisputed part, within 10 working days of each claim10 working dayss 20, Sch 1 cl 6(2)(a)a breach of contractDisputes
Be paid within 30 working days of the claim at the latest30 working dayss 13, Sch 1 cl 6(2)(b)no penalty statedDisputes
Apply for adjudication within 65 working days of a payment dispute arising65 working dayss 8, 28(1), (3)no penalty statedDisputes
Respond to an adjudication application within 15 working days15 working dayss 29(1)no penalty statedDisputes

Catching it before it shuts

A window is cheap to keep and expensive to miss. Count one for a real date in the deadline calculator, or compare every window side by side on the state comparison.

What this page is, and is not

It is the section text this library holds for each state's Act, with the window and the consequence. It is not legal advice, and it is not a substitute for reading the Act and the contract you signed.

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.

Common questions

What happens if you miss a Security of Payment deadline?

It depends on the window. The library records: no penalty stated (40 of 52 windows); you are liable for the full amount (7 of 52 windows); an offence (2 of 52 windows); the claim is barred (2 of 52 windows); a breach of contract (1 of 52 windows).

Which missed windows carry a stated consequence?

NSW s 14(4): Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. QLD ss 35, 40A, 40B: Notify the retention trust account within 5 business days. If missed: an offence. QLD s 76(1), s 77: Receive a payment schedule within 15 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. VIC s 17H: Have no recourse to a performance security until 5 business days after written notice of intention. If missed: the claim is barred. VIC s 15(4): Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. WA s 57: Notify recourse against security within 5 business days. If missed: the claim is barred. WA s 79(5): Keep trust account records for 36 months. If missed: an offence. WA s 25(1), s 26: Receive a payment schedule within 15 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. SA s 14(4): Receive a payment schedule within 15 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. TAS s 19(2), (3)(b): Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. ACT s 16(4): Receive a payment schedule within 10 business days of each claim, or the full amount becomes payable. If missed: you are liable for the full amount. NT s 20, Sch 1 cl 6(2)(a): Receive a notice of dispute, and payment of the undisputed part, within 10 working days of each claim. If missed: a breach of contract.

What does 'no penalty stated' mean?

The library holds the window but no consequence written against it. That does not make the window optional: the Act still sets it, and the step that follows may not be open once it has passed. Check the Act.