Payment claims

Standard form contracts set out the information which must be included in progress claims. This generally includes:

the contractor's estimate of the value of the work completed, including variations;

claims for unfixed materials (if permitted by the contract); and

details of the totals of previous claims, certificates and payments and the amount of retention.

Payment claims may also be required to include details of amounts for nominated subcontractors.

Payment claims should relate only to contract work, and not include claims for breach of contract.

Security of payment legislation

In addition to the contractual provisions relating to claims and payment, all states have legislation which further regulates the claiming and payment of progress claims. See:

the Building and Construction Industry Security of Payment Act 1999 (NSW)

the Building and Construction Industry Payments Act 2004 (Qld)

the Building and Construction Industry Security of Payment Act 2009 (SA)

the Building and Construction Industry Security of Payment Act 2009 (Tas)

the Building and Construction Industry Security of Payment Act 2002 (Vic)

the Construction Contracts Act 2004 (WA)

the Building and Construction Industry (Security of Payment) Act 2009 (ACT)

the Construction Contracts (Security of Payments) Act (NT)

Chapter 15 - Security of Payment.

Although the standard form contracts have not been amended to reflect the requirements of the security of payments legislation, it is recommended that appropriate special conditions be included in construction contracts for projects in affected states and territories.

Care must be taken to ensure compliance with both the contractual and legislative requirements.