Security of Payment in Western Australia: payment claims and adjudication
Western Australia operates under the Building and Construction Industry (Security of Payment) Act 2021 (WA), administered by Building and Energy, within the Department of Energy, Mines, Industry Regulation and Safety. This page explains how to claim and recover progress payments and how the adjudication process works.
Security of Payment law in Western Australia 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 2021 (WA) sets the timeframes you have to respond and pay within.
Here is how the scheme works in Western Australia, who it applies to, the timeframes that matter, and where to get help.
Key timeframes at a glance
- Payment schedule response
- 15 business days
- Payment due
- no later than 20 business days from a principal to a head contractor, and 25 business days from a head contractor to a subcontractor
- Apply for adjudication
- 20 business days after you first become entitled to apply
- Adjudication response
- 10 business days after receiving the application
- Adjudicator's decision
- 10 business days after the response is given or was due
What the Act covers in Western Australia
Western Australia moved to the east-coast model under the Building and Construction Industry (Security of Payment) Act 2021, regulated by Building and Energy. It applies to construction contracts entered into on or after 1 August 2022.
If your contract was entered into before 1 August 2022, the older Construction Contracts Act 2004 still applies, so the date of the contract decides which scheme you use.
How to make a payment claim
A claimant gives a payment claim that identifies the work, states the amount, and states that it is made under the Act. WA requires that endorsement.
A claim must generally be made within six months of the work being carried out unless the contract allows longer, and can be made from the end of the month in which the work was first carried out.
Payment schedules and the response window
The respondent may give a payment schedule before the earlier of the time in the contract or 15 business days after the claim.
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
The 2021 Act introduced maximum payment terms: a principal must pay a head contractor within 20 business days, and a head contractor must pay a subcontractor within 25 business days, of the claim, unless the contract sets an earlier date.
Adjudication: a fast track for unpaid claims
The window to apply for adjudication is 20 business days after you first become entitled to apply, a major reduction from the 90 business days that applied under the old 2004 Act. Where no schedule was given and no payment was made, you first give notice and the respondent gets a further 5 business days to provide a schedule.
The respondent responds within 10 business days of receiving the application, and the adjudicator decides within 10 business days after the response is given or was due.
Recent changes
The 2021 Act replaced the old Construction Contracts Act 2004 for contracts entered into on or after 1 August 2022, with later stages commencing in 2023 and 2024. It cut the adjudication application window from 90 business days to 20 and introduced maximum payment terms. The 2004 Act still applies to contracts entered into before 1 August 2022.
Sources
Where to confirm the current rules
Adjudication in Western Australia 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 2021 (WA), 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 Western Australia have to state it is made under the Act?
Yes. Under the Building and Construction Industry (Security of Payment) Act 2021 (WA), 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 Western Australia?
The respondent has 15 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 Western Australia?
A progress payment is due no later than 20 business days from a principal to a head contractor, and 25 business days from a head contractor to a subcontractor.
How long do I have to apply for adjudication in Western Australia?
The window is 20 business days after you first become entitled to apply. Always confirm the current wording and timeframes against the legislation and the administering body before acting. The figures below are stated in business days.