Not Been Paid for Construction Work? The Security of Payment Act Can Help
Victoria's Security of Payment laws provide a fast, low-cost way to recover money owed for construction work and related services — and you may not even need a signed contract.
Not getting paid for construction work is a common and frustrating problem — but Victoria’s Security of Payment laws provide a fast process for recovering money owed for construction work and related services. You may not even need a signed contract: a quote, purchase order, email exchange, or the parties’ conversations may be enough to establish a claim.
Put This on Your Invoice
The first step can be as simple as sending an invoice that includes the following statement:
“This is a payment claim under the Building and Construction Industry Security of Payment Act 2002.”
The claim should also clearly state:
- What the work or services were.
- How much is owed.
- Who must pay it.
Time Matters
Once a valid payment claim is served, the other side generally has 10 business days to provide a payment schedule, or less if the contract specifies a shorter deadline. If they do not respond in time, they may become liable to pay the full amount claimed. Strict deadlines then apply to the next step, so it’s important to act quickly and get the process right from the outset.
Domestic Building Work
The Act generally does not apply to contracts directly between a builder and a homeowner for domestic building work. However, subcontractors and suppliers working for the builder may still be covered — so it’s worth checking your specific position rather than assuming the Act doesn’t apply.
How We Can Help
- Check whether the Act applies to you.
- Prepare your payment claim.
- Respond to a dispute.
- Chase an amount still unpaid.
Owed money for construction work or services?
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