Security of Payment in Victoria: payment claims and adjudication
Victoria operates under the Building and Construction Industry Security of Payment Act 2002 (Vic), administered by the Victorian Building Authority (VBA). This page explains how to claim and recover progress payments and how the adjudication process works.
Security of Payment law in Victoria 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 2002 (Vic) sets the timeframes you have to respond and pay within.
Here is how the scheme works in Victoria, 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
- no later than 20 business days after the claim, with a 10 business day default if the contract is silent
- Apply for adjudication
- generally 10 business days after you receive the payment schedule
- Adjudication response
- 5 business days after receiving the application, or 2 business days after notice of the adjudicator's acceptance, whichever is later
- Adjudicator's decision
- 10 business days, extendable by agreement
What the Act covers in Victoria
Victoria runs the east-coast Security of Payment model under the 2002 Act, administered by the Victorian Building Authority. It gives a statutory right to claim progress payments and a fast adjudication process for disputed or unpaid claims.
The 2025 reforms that commenced on 15 April 2026 were the biggest change in two decades. They removed the long-criticised excluded amounts regime, so variations, latent condition costs, and delay costs can now be claimed through the scheme.
How to make a payment claim
A claimant serves a payment claim that identifies the work, states the amount, and states that it is made under the Act. Victoria requires that endorsement.
Since the 2025 reforms, the old reference date rules are gone. A claimant can generally make one claim per month, plus a claim after the contract ends, and has up to six months after the work finishes to claim.
Payment schedules and the response window
The paying party must give a payment schedule within 10 business days (or sooner if the contract requires), stating what they propose to pay and why it is less than claimed.
If they do not provide a schedule in time, they become liable for the full claimed amount on the due date.
When payment is due
The reforms cap the payment time so a progress payment cannot be required later than 20 business days after the claim. If the contract is silent, payment falls due 10 business days after the claim.
Adjudication: a fast track for unpaid claims
A claimant applies for adjudication through an authorised nominating authority, generally within 10 business days of receiving the payment schedule.
The respondent can lodge an adjudication response within 5 business days of receiving the application (or 2 business days after notice of acceptance, whichever is later), and cannot raise reasons that were not in the payment schedule. The adjudicator then has 10 business days to decide, extendable by agreement.
Recent changes
Major reforms under the Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Act 2025 commenced on 15 April 2026. They removed the old excluded amounts and reference date rules, extended the claim window to six months after work finishes, and capped the payment time at 20 business days. The reforms apply to claims served on or after 15 April 2026.
Sources
Where to confirm the current rules
Adjudication in Victoria 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 2002 (Vic), 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 Victoria have to state it is made under the Act?
Yes. Under the Building and Construction Industry Security of Payment Act 2002 (Vic), 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 Victoria?
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 Victoria?
A progress payment is due no later than 20 business days after the claim, with a 10 business day default if the contract is silent.
How long do I have to apply for adjudication in Victoria?
The window is generally 10 business days after you receive the payment schedule. Always confirm the current wording and timeframes against the legislation and the administering body before acting. The figures below are stated in business days.