Security of Payment in ACT: payment claims and adjudication
The Australian Capital Territory operates under the Building and Construction Industry (Security of Payment) Act 2009 (ACT), administered by the ACT Government City and Environment Directorate (Planning). This page explains how to claim and recover progress payments and how the adjudication process works.
Security of Payment law in The Australian Capital Territory gives the people who do construction work and supply related goods, head contractors, subcontractors, and suppliers, a statutory right to be paid and a fast way to resolve a payment that is disputed or unpaid. For owners and anyone higher up the contract chain, the same Building and Construction Industry (Security of Payment) Act 2009 (ACT) sets the timeframes you have to respond and pay within.
Here is how the scheme works in ACT, who it applies to, the timeframes that matter, and where to get help.
Key timeframes at a glance
- Payment schedule response
- 10 business days
- Payment due
- the earlier of 15 business days after the claim or the date payment is due under the contract
- Apply for adjudication
- 10 business days after a payment schedule for less than claimed, or 20 business days after the due date where a scheduled amount is unpaid
- Adjudication response
- 7 business days after receiving the application, or 5 business days after notice of the adjudicator's acceptance, whichever is later
- Adjudicator's decision
- 10 business days, or a further time the parties agree
What the Act covers in ACT
The Australian Capital Territory runs the east-coast model under the 2009 Act, administered through the ACT Government planning system. It gives a statutory right to progress payments and a fast adjudication process.
The figures on this page reflect the amendments that took effect on 11 March 2024.
How to make a payment claim
A claimant gives a payment claim to the party liable to pay. It must identify the work, state the amount, and state that it is made under the Act. The ACT requires that endorsement.
A claim can be given from the last day of the month in which the work was first carried out, only one claim per month unless the contract allows more, and up to 12 months after the work was last carried out.
Payment schedules and the response window
The respondent must give a payment schedule within the earlier of the time in the contract or 10 business days after the claim, stating what they propose to pay and why it is less.
If they do not give a schedule in time, they become liable for the full claimed amount on the due date.
When payment is due
A progress payment is payable on the earlier of 15 business days after the claim or the date it is payable under the contract.
Adjudication: a fast track for unpaid claims
Where a payment schedule is for less than claimed, the claimant applies within 10 business days of receiving it. Where a scheduled amount is unpaid, the window is 20 business days after the due date. Where no schedule was given, the claimant first notifies the respondent within 20 business days of the due date and the respondent gets 5 business days to provide a schedule.
The respondent responds within the later of 7 business days of the application or 5 business days after notice of acceptance, and the adjudicator decides within 10 business days, or a further time the parties agree.
Recent changes
Amendments that took effect on 11 March 2024 reshaped the progress payment and adjudication provisions, including the 15 business day due date rule and the monthly payment claim entitlement.
Sources
Where to confirm the current rules
Adjudication in ACT is run through an authorised nominating authority (ANA), which refers the application to an adjudicator. The primary sources below are the place to confirm the current timeframes and wording.
BuildFair
How BuildFair fits alongside Security of Payment
Security of Payment is a recovery process you reach for after a payment has already gone wrong. BuildFair works earlier. Project funds sit outside the builder's operating account and are released against the agreed rules, so approved work has a clear path to payment in the first place. It does not replace your statutory rights under the Building and Construction Industry (Security of Payment) Act 2009 (ACT), it makes the disputes that trigger them far less likely.
Whichever side of the contract you are on, the same ringfenced funds and shared payment record work in your favour.
Builders
Fund jobs without bankrolling them
Run the project off ringfenced funds, so approved progress claims and subcontractor invoices have money behind them before a dispute ever starts.
For builders →Owners
See where your money sits
Your progress payments are released only against work you have approved, with a live record of every claim and payment on the job.
For owners →Subcontractors
Know the funds are there
Approved invoices are paid from money already set aside for the project, on a fixed clock, not whenever cashflow allows.
For subcontractors →Suppliers
Get paid from set-aside funds
Invoice through the project and be paid from funds ringfenced for the job, with a clean record behind every payment.
For suppliers →FAQ
Frequently asked questions
Does a payment claim in ACT have to state it is made under the Act?
Yes. Under the Building and Construction Industry (Security of Payment) Act 2009 (ACT), a payment claim must state that it is made under the Act. If that statement is missing, the claim does not enliven the scheme.
How long does the other party have to respond to a payment claim in ACT?
The respondent has 10 business days to give a payment schedule. If they do not respond in time and do not pay by the due date, they generally become liable for the full claimed amount.
When is a progress payment due in ACT?
A progress payment is due the earlier of 15 business days after the claim or the date payment is due under the contract.
How long do I have to apply for adjudication in ACT?
The window is 10 business days after a payment schedule for less than claimed, or 20 business days after the due date where a scheduled amount is unpaid. Always confirm the current wording and timeframes against the legislation and the administering body before acting. The figures below are stated in business days.