Getting paid on time: how payment claims and schedules work for NSW tradies

Ask a room full of NSW subbies whether they’ve ever used the security of payment rules and most will shake their heads. Many have heard of them. Few know exactly what they say. That’s a shame, because the rules are built to stop exactly what drains so many trade businesses: claims that sit unpaid for weeks while wages and materials keep going out.

This guide walks through how payment claims work in NSW, based on the NSW Government’s guidance, and how to use the timeframes to tighten your cash flow. It’s general information, not legal advice. For a specific dispute, talk to a construction lawyer.

The basics: who and what is covered

The NSW security of payment rules apply to construction work and related goods and services under a construction contract. That covers most head contractors and subcontractors on building and construction work in NSW, from framers and sparkies to concreters, plumbers and tilers. Some residential work has its own variations, which is why you’ll see different timeframes for “exempt residential” work below.

Step 1: Know your reference date

You can make one payment claim per reference date. The reference date is whatever your contract sets. If the contract doesn’t set one, the reference date is the last day of each month.

What that means in practice:

• If your contract has fortnightly reference dates, you can claim every fortnight.
• If it’s silent, you can claim monthly, at month end.
• If you miss a reference date, you can include the unpaid work in your next claim, but you’ve lost time.

Tip: when you’re negotiating a contract on a long job, ask for fortnightly reference dates. It can cut your cash gap significantly. Run the numbers in our cash-flow gap planner to see the difference.

Step 2: Make a proper claim

A claim should clearly identify the work done and the amount claimed. Claims can cover work completed in the past 12 months. A few good habits:

• describe the work done since the last claim clearly;
• attach photos, delivery dockets or a stage checklist where helpful;
• include any unpaid amounts from earlier claims;
• keep a copy and a record of when and how it was served.

Knowingly giving false or misleading information in a claim is a serious offence, so be accurate.

Step 3: The 10 business day payment schedule

Once the other party receives your claim, they have 10 business days to serve a payment schedule if they intend to pay less than you’ve claimed. The schedule says how much they’ll pay and why they’re withholding the rest.

Here’s the powerful part: if they don’t serve a payment schedule within 10 business days, they must pay the whole claim by the due date.

Many builders and head contractors know this rule well. Many subbies don’t. Track the date you served each claim and count 10 business days forward.

Step 4: The payment due date

Unless the contract sets an earlier date, payment is due:

Who is claiming	Due date after the claim
Head contractor claiming from a principal	15 business days
Subcontractor	20 business days
Subcontractor on related exempt residential work	10 business days

A contract can set an earlier date, but not a later one. If your contract says 45 days and these rules say 20 business days, the shorter period applies.

Step 5: If you’re not paid, or paid short

You have options, but the deadlines are short.

Adjudication

• If you disagree with the payment schedule, apply for adjudication within 10 business days of receiving it.
• If you agree with the schedule but haven’t been paid, apply within 20 business days of the due date.
• If no schedule was served and you weren’t paid by the due date, you can apply for adjudication or take court action.

Adjudication is designed to be much faster than going to court. An authorised nominating authority can explain the process and costs.

Suspending work

You can suspend work if you’re not paid, but you must give written notice first. You can suspend 2 business days after giving notice, and your right to suspend continues until 3 business days after you’re paid.

Interest

You can claim interest on late payments at the contract rate or the court rate under the Uniform Civil Procedure Rules, whichever is greater.

A head contractor’s obligation

If you’re a builder or head contractor, the rules also put obligations on you. When you make a claim to your principal, you must provide a supporting statement declaring that your subcontractors have been paid. The approved form depends on whether the contract is with an owner-occupier. This is one reason good builders keep their subbies paid on time, and why your own cash flow plan should never depend on paying trades late.

A claim calendar you can stick on the fridge

Day	What happens
Reference date	Serve your claim
Claim + 10 business days	Payment schedule deadline
Claim + 20 business days	Subcontractor payment due (unless contract is earlier)
Schedule + 10 business days	Deadline to apply for adjudication if you disagree
Due date + 20 business days	Deadline to apply for adjudication if unpaid after an agreed schedule

Put every claim into your phone calendar with these reminders. It takes two minutes and could make the difference between getting paid and writing it off.

How this connects to cash flow

Even when everyone follows the rules, a subcontractor in NSW can wait four weeks or more between doing the work and being paid, plus whatever was spent on materials beforehand. That’s the gap cash flow finance is built for. Our progress payment gaps page explains how lines of credit and cash flow loans are used to carry it, and slow-paying clients covers what to do when the rules aren’t being followed.

The Payment Times Reporting Regulator also publishes data on how quickly large businesses pay small suppliers. It’s worth a look before you sign a big contract with a large head contractor.

Common mistakes subbies make

• Not putting a claim in on the reference date because the job “isn’t at a good stage yet”.
• Losing track of the 10 business day schedule deadline.
• Accepting a short payment without checking whether a valid schedule was served.
• Missing adjudication deadlines while trying to sort it out with phone calls.
• Signing contracts with long payment terms without realising the law sets a maximum.

Keeping the paperwork tight on every job

Most payment disputes come down to paperwork. The tradie who wins is usually the one who can show, quickly and clearly, what was agreed, what was done and when the claim was served. A few habits make that easy:

• Keep the contract or the written quote. Even a short email confirming scope and price is better than a handshake.
• Photograph the work as you go. Dated photos of each stage back up what you’re claiming for.
• Record variations in writing. If the builder asks for extra work on site, confirm it by text or email the same day, with the price if you can.
• Serve claims the same way every time. Use the method the contract allows, keep a copy and note the date and time.
• Diary the deadlines. As soon as a claim is served, note the date a payment schedule is due and the date payment is due.

These habits cost nothing, and they matter most when cash is tight. If you’re carrying the cost of a claim that’s late or disputed, the cash-flow gap planner shows how long your money is out, and a quick enquiry can tell you whether finance can bridge the wait while the claim process runs.

Waiting on claims that should have been paid?

If your claims are being paid, just slowly, finance can carry you through while you tighten up your process. Tell us roughly what you’re owed, what the business turns over each month and what you need to cover. A real person who understands claims, schedules and retention will call you back. There’s no credit check when you first enquire, and your details aren’t sent out to a crowd of lenders. Please be accurate on the form so the options fit your situation. Check your options.