Security of Payment in NT: payment claims and adjudication
The Northern Territory operates under the Construction Contracts (Security of Payments) Act 2004 (NT), administered by the Construction Contracts Registrar. This page explains how to claim and recover progress payments and how the adjudication process works.
Security of Payment law in The Northern 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 Construction Contracts (Security of Payments) Act 2004 (NT) sets the timeframes you have to respond and pay within.
Here is how the scheme works in NT, who it applies to, the timeframes that matter, and where to get help.
Key timeframes at a glance
- Payment due
- within 28 working days of a payment claim where the contract is silent, and a contract cannot require payment more than 50 days after a claim
- Apply for adjudication
- 65 working days after the payment dispute arises, per current NT Government guidance (confirm the current figure with the Registrar before relying on it)
- Adjudication response
- 10 working days after being served with the application
- Adjudicator's decision
- 10 working days after the response is served or was due, extendable only with the Registrar's consent
What the Act covers in NT
The Northern Territory uses a different model from the east-coast states. Under the Construction Contracts (Security of Payments) Act 2004, adjudication is triggered by a payment dispute rather than by a failure to respond to a payment claim, and the Act mainly implies fair terms where a contract is silent.
The scheme is overseen by the Construction Contracts Registrar. In practice, adjudication applications are made through the Community Justice Centre.
How to make a payment claim
The NT Act does not impose a single statutory payment claim form over your contract. Instead, where the contract is silent, the Act implies fair terms: how a claim is made, how the other party responds, and when payment is due.
Pay-if-paid and pay-when-paid clauses are void, and a clause that requires payment more than 50 days after a claim is read down to require payment within 28 days.
Responding to a claim and payment disputes
There is no separate payment schedule regime as in the east-coast states. Where the contract is silent, the party that wants to reject or dispute a claim must, within 14 days of receiving it, give a written notice of dispute and pay any undisputed part.
A payment dispute arises when a claim is rejected, disputed, or not paid in full by the due date. That dispute is what opens the door to adjudication.
When payment is due
Where the contract is silent, the implied term requires payment within 28 working days of the claim. Separately, the Act caps any contractual payment term so a contract cannot require payment more than 50 days after a claim.
Adjudication: a fast track for unpaid claims
Adjudication is triggered by a payment dispute, and the NT gives a much longer window to apply than the east-coast states: current NT Government guidance puts it at 65 working days after the dispute arises. This figure has changed over time, so confirm the current window with the Construction Contracts Registrar before you rely on it.
The respondent responds within 10 working days of being served, and the adjudicator must decide within 10 working days after the response is served or was due, unless the Registrar consents to an extension.
Recent changes
The Northern Territory has kept the Construction Contracts model rather than moving to the east-coast model, which makes it the most distinctive Security of Payment regime in Australia.
Sources
Where to confirm the current rules
Adjudication in NT is run through a registered adjudicator or a prescribed appointer (in practice the Community Justice Centre). 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 Construction Contracts (Security of Payments) Act 2004 (NT), 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
When is a progress payment due in NT?
A progress payment is due within 28 working days of a payment claim where the contract is silent, and a contract cannot require payment more than 50 days after a claim.
How long do I have to apply for adjudication in NT?
The window is 65 working days after the payment dispute arises, per current NT Government guidance (confirm the current figure with the Registrar before relying on it). Always confirm the current wording and timeframes against the legislation and the administering body before acting. The figures below are stated in business days.