What is a Payment Schedule?
A Payment Schedule is a written reply to a Payment Claim.
This is supposed to be sent to you by the Respondent (the person who owes you progress payments) when they do not agree with the amount claimed in your Payment Claim. It states how much they are willing to pay, and why.
What to Expect
If you have payment claims for construction work performed, or for related services rendered, or for related goods supplied, and you have served on the Respondent a valid Payment Claim, one of two things may happen within the Security of Payment scheme:
2. they don’t agree with your claimed amount, in which case, they are required to reply with a Payment Schedule.
How Do I Know if Their Payment Schedule is Valid?
There is no required form for its validity; however, you need to check if the following information are present:
As long as the information above are included in the Respondent’s Payment Schedule, it’s valid.
What Amounts May Be Excluded?
There are amounts which should not be included in your Payment Claim; and if you include them, the Respondent may list them as “excluded amounts” in their Payment Schedule:
When Should They Send Me the Payment Schedule?
If the Respondent disagrees with your claimed amount, they have 10 business days from receipt of your Payment Claim, to serve their Payment Schedule (unless your construction contracts allows less time).
If they miss this 10-business day deadline (or the deadline stated in your contract), they will be liable to pay the full amount claimed in your Payment Claim. Enforcement of this full amount may be via court or via adjudication.
How Should They Send Me the Payment Schedule?
Respondent may validly “serve” their Payment Schedule through any of the following means:
What if They Don't Serve a Payment Claim, and Also Refuse to Pay the Claimed Amount?
How We Can Help
If you need help facilitating your progress payment claims, feel free to give us a call. Construction Lawyer Melbourne has over 10 years’ relevant experience in debt recovery and Security of Payment, and has helped countless clients obtain satisfactory results. Contact us now. First consult is absolutely free.