Concrete and formwork subcontracts in New South Wales: what to check before you sign
In New South Wales, a concrete subcontract is read alongside the Building and Construction Industry Security of Payment Act 1999 (NSW), which caps subcontract payment terms at 20 business days. The contract itself still decides the risks that cost concrete and formwork subcontractors most: liquidated damages without a cap; weather and inclement days; quantity and design changes.
AI risk report, not legal advice. The scanner gives general information about the risks in a document. It is not a lawyer, does not know your circumstances, and can be wrong. For decisions with legal consequences, get advice from a construction lawyer.
New South Wales rules that override your contract
Statute: Building and Construction Industry Security of Payment Act 1999 (NSW)
- Payment terms for subcontractors are capped at 20 business days after the payment claim. A longer term in the contract doesn't change that.
- If the builder disputes a payment claim, it has to answer with a payment schedule within 10 business days (or any shorter period in the contract).
- 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.
- Adjudication: typically 10 business days from receiving a payment schedule that disputes the claim, through a private authorised nominating authority.
- Retention on larger projects must be held in trust.
Where concrete and formwork subcontractors lose money
Liquidated damages without a cap
Because structure sits on the critical path, a late pour can delay the whole project. An uncapped liquidated damages clause exposes you to the builder's entire delay cost. Push for a cap, commonly 5 to 10 percent of the subcontract sum.
Weather and inclement days
Check whether wet days give an extension of time automatically or only above an allowance, and whether you need to notify each day. A daily notice requirement with an absolute bar is easy to miss in a wet month.
Quantity and design changes
Thickened slabs, extra reinforcement and late design changes change your quantities. A lump sum with no remeasure or rates for changes leaves the extra concrete and steel unpaid.
Pump, crane and access dependencies
If access, crane time or pump positions depend on the builder, the contract should treat interruptions as delay events, not your risk.
Three things to push for in your departures schedule
- Liquidated damages capped at 5 to 10 percent of the subcontract sum
- Extension of time for inclement weather with a simple monthly notice
- Agreed rates for quantity changes and design revisions
The free scanner finds these clauses in your actual contract in about two minutes and writes the departures schedule for you.
What the Index says
Live figures from the Australian Subcontract Index, 90 real subcontracts. The Index holds only 8 concrete and formwork contracts so far, under the 10-contract threshold, so these are national figures across all trades. Nothing under 10 contracts is ever shown.
Concrete and formwork subcontracts in other states
Concrete and formwork subcontracts in NSW: common questions
How long does a builder in NSW have to pay a concrete and formwork subcontractor?
No more than 20 business days after your payment claim, whatever the contract says. If the builder disputes the claim, it has 10 business days to answer with a payment schedule giving its reasons.
Are uncapped liquidated damages normal in concrete subcontracts?
They are common, which is why they are worth negotiating. An uncapped clause can expose you to the builder's entire delay cost for a package that may be a small share of the project. A cap of 5 to 10 percent of your subcontract sum is a widely used market position.
Where do NSW concrete and formwork payment disputes go?
Authorised Nominating Authorities (NSW Fair Trading maintains the list). Timing: typically 10 business days from receiving a payment schedule that disputes the claim, through a private authorised nominating authority.
Is this legal advice?
No. It is general information about common subcontract risks and the state's payment law as recorded in our registry. Statutory details change; check the current Act, and take the scanner's report to a construction lawyer for decisions with legal consequences.
General information, not legal advice. Statutory details are taken from our state law registry and change over time; verify them against the current Building and Construction Industry Security of Payment Act 1999 (NSW) before relying on them. Built by Mat Kennedy, Founder, The Construction Contracts Co.