Payment schedule response letter: dispute the reasons and keep adjudication open

A payment schedule that pays less than you claimed is the builder's formal answer, and its reasons are the only reasons it can argue at adjudication. Respond in writing, item by item, the same week: it puts your position on the record, often gets part of the money released without a fight, and keeps the adjudication clock in view.

When to use it

The builder served a payment schedule for less than your payment claim
Deductions or back charges appear in the schedule with little or no explanation
You want the undisputed amount paid now while the rest is argued

In the Word and PDF: The response letter, item by item; A table to set out each disputed amount and your answer; A paragraph reserving your right to apply for adjudication. Every [placeholder] is highlighted so nothing gets missed.

Where is the work? (sets the Act referenced in the template)

RESPONSE TO PAYMENT SCHEDULE

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

Re: Payment schedule dated [date] responding to our payment claim no. [X] dated [date]

We refer to your payment schedule dated [date], which schedules $[amount] against our payment claim of $[amount] (ex GST), a difference of $[amount].

We do not accept the reasons given for paying less than the claimed amount. Our response to each item is set out below.

Item | Your reason | Amount withheld | Our response
[1] | [reason stated in the schedule] | $[amount] | [why it is wrong: e.g. work completed on [date], see photos / docket no. [X]]
[2] | [back charge / defect / set-off] | $[amount] | [no notice or particulars given before deduction; no evidence provided]
[3] | [variation not approved] | $[amount] | [directed by [name] on [date], confirmed by our email of [date]]

The scheduled amount of $[amount] is payable by [due date under the contract and the Act]. Please confirm payment of that amount on time.

For the balance of $[amount], please provide by [date] the evidence relied on for each item above, or confirm that the amounts will be paid with the scheduled amount.

We reserve our rights under the subcontract and the Building Industry Fairness (Security of Payment) Act 2017 (QLD), including the right to apply for adjudication of the amounts in dispute within the time the Act allows.

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

Download Word (.docx)Download PDF

Free to use and adapt. Replace every [bracketed placeholder] and verify the Act section and notice period for your state before sending.

Template, not legal advice. Your contract's clauses and your state's Act govern. Check both (especially clause numbers, notice periods and service requirements) before this goes out on a real dispute.

Using it well

Diarise the adjudication window the day the schedule arrives

Once a schedule pays less than you claimed, the time to apply for adjudication is short, typically counted in business days from when you received the schedule, and it varies by state. This letter does not stop that clock. Put the deadline in the diary before you write anything.

Answer the reasons they gave, nothing else

At adjudication the builder is generally limited to the reasons in its payment schedule. Answer each one with a date, a document or a photo. New arguments from either side later carry far less weight.

Ask for the undisputed amount separately

The scheduled amount is payable on time regardless of the dispute over the rest. Say so plainly, so the argument about the balance never becomes a reason to hold back everything.

The template protects the claim. The contract decides it.

Your notice windows, the clause numbers and whether the bar is absolute all live in your subcontract. The free scanner reads them in about two minutes, benchmarked against real Australian subcontracts.

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Common questions

What should I do when the payment schedule is less than my claim?

Respond in writing to each reason the builder gave, confirm the scheduled amount must be paid on time, and decide quickly whether to apply for adjudication for the difference. The window to apply is short and runs from when you received the schedule.

Does replying to the payment schedule extend the time to apply for adjudication?

No. Correspondence does not pause the statutory timeframe. Use the letter to put your position on record and to try to resolve it, but keep the adjudication deadline in view the whole time.

What if the builder never sent a payment schedule at all?

In the East Coast states, a builder that misses the deadline for a payment schedule generally becomes liable for the full claimed amount. Some states require you to give a notice before applying for adjudication in that situation. See our guide on what happens when the builder ignores your payment claim.

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General information and a starting-point template, not legal advice. Contracts and state Acts differ and change. Verify clause numbers, statutory sections, notice periods and service requirements before use, and get advice on a live dispute. Nothing on this page is uploaded or stored. Built by Mat Kennedy at The Construction Contracts Co.