TCCC
The Construction Contracts Co.
Tasmania Subcontract Guides
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Tasmania · payment terms

How long can a builder take to pay a subcontractor in Tasmania?

Tasmania law doesn't impose a single fixed cap on subcontract payment terms, so the number in your contract mostly governs, which is why long terms need to be caught before signature. The Building and Construction Industry Security of Payment Act 2009 (TAS) still gives you the payment claim mechanism, and a builder who misses the 10 business days payment schedule deadline becomes liable for the full claimed amount.

What the TAS Act actually requires

Under the Building and Construction Industry Security of Payment Act 2009 (TAS), you can serve a payment claim for work performed, and the builder must respond with a payment schedule within 10 business days (or any shorter period your contract sets). The schedule must say what they'll pay and why anything is withheld.

If no schedule arrives in time, the claimed amount becomes a debt due in full, and the builder is barred from raising its reasons at adjudication. Tasmania's adjudication volumes are low, which in practice means a well-founded claim carries unusual negotiation leverage before any application is filed, because builders here rarely want to be the test case.

What the market actually does

Across the Australian subcontracts we've analysed, the median stated payment term is 25 days from claim to cash, and the worst drafting we see stretches past 45 calendar days by running terms from end of month or from the builder's own payment certificate rather than from your claim.

The trigger matters as much as the number. A term that runs "from the payment certificate" puts the clock in the builder's hands; the position to ask for is payment within a fixed number of days from a valid payment claim.

What to check before you sign

Find the payment clause and read three things: the number of days, what starts the clock, and any preconditions to payment: statutory declarations, executed documents, warranties. Preconditions operate as payment holds even where the timing itself is lawful.

Pay-when-paid clauses (where the builder's obligation to pay you depends on being paid upstream) are void in every Australian jurisdiction. They still appear in drafting; they are unenforceable.

From the Australian Subcontract Index, live data
25 days
median payment terms · n=75
97%
allow set-off without notice · 75 of 77
From 90 subcontracts analysed to date · see the full Index
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Frequently asked questions

Can a Tasmania subcontract make me wait 60 days for payment?

The contract can state long terms, but the Building and Construction Industry Security of Payment Act 2009 (TAS)'s claim mechanism still runs alongside it, and a missed payment schedule (due within 10 business days) makes the full claimed amount payable. Long stated terms are a commercial red flag worth negotiating before signature.

Is a pay-when-paid clause enforceable?

No. Pay-when-paid and pay-if-paid provisions are void under security of payment legislation in every Australian state and territory.

Screwed Down by Mat Kennedy
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Chapter 1 of Screwed Down: You are the builder's bank, and the interest rate is zero
What it costs you in dollars, the clause to ask for, and what to do on Monday.
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Keep reading
What are normal payment terms in an Australian subcontract? →Is a pay-when-paid clause legal in Australia? →What makes a progress claim one that actually gets paid? →Time bars in Tasmania subcontracts: what you lose, and when →Retention on Tasmania subcontracts: what's normal, and what to watch →How adjudication works in Tasmania →Not being paid in Tasmania: when can you lawfully stop work? →Variations on Tasmania 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.