What happens if the builder ignores my payment claim?
On the East Coast Security of Payment model (every state and territory except the NT), a builder who fails to serve a payment schedule within the statutory window becomes liable for the full claimed amount and is barred from raising reasons against it at adjudication. The window is 10 business days from your claim in NSW, VIC, TAS and the ACT, and 15 business days in QLD, SA and WA. Silence is one of the strongest positions a subcontractor can hold.
Why silence is your leverage
Builders lose payment disputes more often through administration than argument. A payment schedule has to be served in time and has to state the reasons for paying less. Reasons not raised in the schedule generally can't be raised later at adjudication. A builder who lets the window pass hasn't just delayed your money; they've forfeited their defence.
This is why serving clean, regular payment claims matters even when the relationship is good. Each claim starts a statutory clock the builder has to respect. When the relationship sours, the claims you served, and the schedules they did or didn't serve, are the whole battlefield.
What to do when the window passes
You generally have two paths: sue for the amount as a statutory debt, or take it to adjudication where the respondent's hands are tied. Both paths have their own notice requirements and deadlines, and they differ by state. The right move depends on the numbers, the documents and the dates, which is exactly what Adjudicate Pro weighs up for free before you brief anyone.
Know where your contract stands
Adjudicate Pro: what an adjudicator would likely award under your state's Act, and whether to apply.
Assess my payment dispute freeCommon questions
Does my payment claim need to say it's made under the Act?
In most states, no longer. QLD dropped the requirement in 2020 and NSW claims don't need the endorsement either. A claim that identifies the work and the amount can carry statutory consequences the builder doesn't see coming. Check your state's current position before relying on it.
The builder responded late. Does the schedule still count?
A schedule served after the statutory window doesn't undo the liability that arose when the window closed, though the tactical picture depends on which path you take next and your state's mechanics. The dates on the documents decide this. Keep everything.
Keep reading
- The builder isn't paying me. What can I actually do? →
- The builder's payment schedule came back short. What now? →
- What are normal payment terms in an Australian subcontract? →
- What is the Security of Payment Act? →
- Free template: payment claim cover →
- Payment claim deadline checker: your statutory timeline by state →
General information for Australian subcontractors, not legal advice. Statutory deadlines and details vary by state and change over time; verify them before relying on them. Written by Mat Kennedy at The Construction Contracts Co.