Letter of demand template for subcontractors: unpaid progress payments

• A scheduled or certified amount has passed its due date unpaid
• The builder didn't serve a payment schedule in time and hasn't paid the claim
• Calls and emails about the payment have been ignored

LETTER OF DEMAND

[Subcontractor company name, ABN]
Date: [date]
To: [respondent legal entity, ABN]
Attention: [director / contract administrator]
Contract: [subcontract title / number]
Project: [project name / site address]

Overdue payment: $[total amount] (including GST)

The following amounts are due and unpaid under the subcontract:

Payment claim | Date served | Amount due | Due date | Paid
[No. X] | [date] | $[amount] | [date] | [$0 / $part]
[No. Y] | [date] | $[amount] | [date] | [$0 / $part]

[Choose one:]
[The amounts above were set out in your payment schedule(s) dated [date] and were not paid by the due date.]
[No payment schedule was served within the time required by the Building Industry Fairness (Security of Payment) Act 2017 (QLD), so the full claimed amount is due and payable.]

We demand payment of $[total amount] in full by [date, e.g. 5 business days from this letter], into the account below.

Account name: [name]
BSB: [BSB]  Account: [account number]

If payment is not received by that date, we intend without further notice to take one or more of the following steps, as the Building Industry Fairness (Security of Payment) Act 2017 (QLD) and the subcontract allow:
- recover the unpaid amount as a debt due, including in court;
- apply for adjudication of the amount;
- suspend work under the subcontract after giving the notice the Act requires;
- claim interest at the rate the subcontract or the Act provides.

[OPTIONAL: This letter is also notice of our intention to suspend work under the Building Industry Fairness (Security of Payment) Act 2017 (QLD) if the amount is not paid within [the notice period under the Act] business days of receipt.]

Nothing in this letter waives any of our rights under the subcontract or at law.

Regards,
[name, position]
[company]
[phone / email]