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Time bars in New South Wales subcontracts: what you lose, and when

A time bar is a clause that extinguishes your claim - for an extension of time, a variation, or delay costs - unless written notice is given within a stated window. In every subcontract we've analysed where the drafting was identifiable, the time bars were absolute: miss the window and the entitlement is gone, not reduced. Your Building and Construction Industry Security of Payment Act 1999 (NSW) payment claim rights survive contractual time bars, but your contractual entitlements don't.

How the clause actually works

The typical drafting makes notice a condition precedent: no notice in time, no entitlement - regardless of merit, regardless of whether the builder caused the delay. Notice windows in the contracts we've analysed run as short as 2 business days for variations and cluster around 5 business days for extensions of time.

The trap isn't the paperwork, it's the trigger: the clock usually runs from when the delay or direction occurred, not from when its cost became clear. A site conversation doesn't stop it. Only written notice in the form the contract requires does.

What New South Wales law does and doesn't rescue

The Building and Construction Industry Security of Payment Act 1999 (NSW) can't be contracted out of: your right to serve a payment claim, and the builder's obligation to answer it with a payment schedule within 10 business days, survive whatever the contract says. But an EOT entitlement extinguished by a contractual time bar is hard to revive anywhere - the Act protects the payment process, not the underlying contractual entitlement.

Head contractors must pay subcontractors within 20 business days of the claim, retention money on larger projects must be held in trust, and work can lawfully be suspended after non-payment on two business days' notice.

The habit that beats the clause

You won't negotiate every time bar out. The operating fix is a standing habit: written notice the day anything changes - a delay starts, a direction lands, scope moves - before the ute leaves site. One short email that anchors the date, flags the claim, and says the formal notice follows.

Before signature, the positions worth asking for: a longer window (10 business days is defensible; builders have accepted more), notice as a requirement rather than a bar, and one notice per event rather than rolling updates.

From the Australian Subcontract Index - live data
100%
have time bars that extinguish the claim entirely · 39 of 39
From 54 subcontracts analysed to date · see the full Index
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Frequently asked questions

Can a time bar in a NSW subcontract really extinguish a claim the builder caused?

Yes, and it's the standard drafting - the clause operates on notice, not fault. Courts enforce clear conditions precedent. The protection is operational: written notice inside the window, every time.

Do time bars stop me making a payment claim under the Act?

No - the Building and Construction Industry Security of Payment Act 1999 (NSW) can't be contracted out of, and your payment claim rights survive. But the Act protects the payment process; a contractual EOT entitlement lost to a time bar doesn't come back through adjudication.

Keep reading
What is a time bar in a subcontract — and when does it kill the claim?How many days to notify an EOT claim is normal?Do variations need to be in writing for me to get paid?How long can a builder take to pay a subcontractor in New South Wales?Retention on New South Wales subcontracts: what's normal, and what to watchHow adjudication works in New South WalesNot being paid in New South Wales: when can you lawfully stop work?Variations on New South Wales subcontracts: getting changed work paid

General information for Australian subcontractors, not legal advice. Statutory deadlines change and have exceptions - verify against the Act and current guidance, or with a construction lawyer, before acting on them.