Security of Payment in Tasmania: payment claims and adjudication
Tasmania operates under the Building and Construction Industry Security of Payment Act 2009 (Tas), administered by Consumer, Building and Occupational Services (CBOS). This page explains how to claim and recover progress payments and how the adjudication process works.
Security of Payment law in Tasmania 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 (Tas) sets the timeframes you have to respond and pay within.
Here is how the scheme works in Tasmania, who it applies to, the timeframes that matter, and where to get help.
Key timeframes at a glance
- Payment schedule response
- 10 business days (20 business days where the respondent is the owner of land for a residential structure and is not a building practitioner)
- Payment due
- 10 business days after the claim (20 business days for that residential owner case)
- Apply for adjudication
- 10 business days after you receive the payment schedule, or 20 business days after the due date where an amount is unpaid
- Adjudication response
- 10 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, unless the parties agree to longer
What the Act covers in Tasmania
Tasmania runs the east-coast model under the 2009 Act, with public guidance from Consumer, Building and Occupational Services. It gives a statutory right to progress payments and a fast adjudication process.
Tasmania has a specific rule for residential work: where the respondent is the owner of the land and is not a building practitioner, several of the timeframes double to 20 business days.
How to make a payment claim
A claimant serves a written payment claim that identifies the work, states the amount, and states that it is made under the Act. Tasmania requires that endorsement.
A claim is made by reference to a reference date, which defaults to the last day of each month in which work was carried out unless the contract fixes another date.
Payment schedules and the response window
The respondent may reply with a payment schedule within 10 business days (20 business days for the residential owner case), stating what they propose to pay and why it is less than claimed.
If they do not provide a schedule in time and do not pay by the due date, they become liable for the claimed amount.
When payment is due
A progress payment falls due 10 business days after the claim, or 20 business days where the respondent is the owner of land for a residential structure and is not a building practitioner.
Adjudication: a fast track for unpaid claims
Where the scheduled amount is less than claimed, the claimant applies within 10 business days of receiving the schedule. Where an amount is unpaid, the window is 20 business days after the due date. For the no-schedule path the claimant first gives notice and the respondent gets a further 5 business days.
The respondent responds within the later of 10 business days of the application or 5 business days after notice of acceptance, and can only raise reasons already in the payment schedule. The adjudicator decides within 10 business days.
Recent changes
No substantive Tasmania-specific reform has been enacted. The Act remains broadly as originally passed.
Sources
Where to confirm the current rules
Adjudication in Tasmania is run through an authorised nominating authority (ANA), which appoints the 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 (Tas), 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 Tasmania have to state it is made under the Act?
Yes. Under the Building and Construction Industry Security of Payment Act 2009 (Tas), 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 Tasmania?
The respondent has 10 business days (20 business days where the respondent is the owner of land for a residential structure and is not a building practitioner) 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 Tasmania?
A progress payment is due 10 business days after the claim (20 business days for that residential owner case).
How long do I have to apply for adjudication in Tasmania?
The window is 10 business days after you receive the payment schedule, or 20 business days after the due date where an 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.