What is a Payment Claim, and Why Do I Need One?

A Payment Claim is a written claim for progress payment under the SOP Act. 

You need it because it is your ticket to recovering payment for construction work performed, related services rendered, or related goods supplied. 

terminating building contract

Enforcing Claims

If you have underpaid or unpaid construction work, all you need to jumpstart the payment recovery process, is to:

Make a valid Payment Claim
Serve the valid Payment Claim on the “Respondent” (the person who owes you money)

How Do I Make a Valid Payment Claim?

To make a valid Payment Claim, you need to state the following:

description-of-works

1. the kind of works performed, goods supplied, services rendered

claimed-amount
2.the claimed amount 
sopa-paper
3. the fact that it is made under the Building and Construction Industry Security of Payment Act 2002.
If your Payment Claim does not contain the above, your Payment Claim is invalid and unenforceable.

Other Key Considerations

You also need to be mindful of the Reference Date.

  • The Reference Date is the date when a claim may be made.
  • The Reference Date may be:

a) the date specified in your contract

b) if it’s not specified in your contract, it may be:

Homeowners right to terminate the building contract

Serving the Payment Claim

After you’ve made a valid Payment Claim, the next step is for you to effect valid service.

When

Your valid Payment Claim must served on the Respondent:

a) within 3 months after the reference date

or

b) within the period specified in the contract; whichever is later.

How

  • Delivered to Respondent in person
  • Lodged during business hours at the Respondent's ordinary place of business
  • Sent by post to the Respondent's ordinary place of business
  • Faxed to the Respondent's ordinary place of business
  • Any other manner specified in the contract

How We Can Help

Our specialist construction lawyers can help you prepare and serve a valid Payment Claim, and can guide you through the debt recovery process under the Security of Payment scheme. Should you need more information, don’t hesitate to give us a call. First consult is absolutely free.