1. Make your claim from a valid reference date

SOP claims hang off a "reference date": the point in your contract when you become entitled to make a payment claim, usually monthly. If you claim before your reference date, or try to squeeze in more than one claim for the same period when the Act only allows one, the whole claim can be challenged. Check what your subcontract says about when and how often you can claim, and line your claims up with those dates. Our guide on what to check before signing an AS 4901 subcontract covers where these payment terms usually sit.

2. Label and format the claim the way your state requires

The formatting rules differ by state. In New South Wales, for example, a claim connected to residential building work must state that it is made under the Building and Construction Industry Security of Payment Act 1999. In Queensland under the BIF Act, a claim does not have to name the Act, but it must still request payment and meet the Act's requirements; using the word "invoice" can be enough to count as a request. Because the wording matters, confirm exactly what your state's Act asks for rather than assuming a plain invoice will do.

3. Identify the work and the amount so there's no argument

A payment claim has to identify the construction work (or related goods and services) you are claiming for and state the amount you say is due. Vague, lumped-together figures invite disputes and payment schedules that whittle your claim down. Break the work down clearly, tie each item to your scope, and make the claimed amount easy to follow. The clearer the claim, the harder it is to dispute line by line.

4. Include everything you're actually owed

It is easy to claim the obvious progress figure and forget the extras. Make sure your claim captures approved and pending variations, dayworks, and any retention due for release, where the Act and your contract allow. Keep the paperwork behind each one so it stands up. See our notes on variation claim evidence and use a dayworks docket generator to keep those records tidy as the work happens rather than reconstructing them later.

5. Serve the claim properly and start the clock

Once you serve a valid claim, the respondent has a limited window to reply with a payment schedule setting out what they propose to pay and why. In NSW that window is a maximum of 10 business days (and "business day" excludes weekends, public holidays and the 27–31 December period). If they miss that deadline, they can become liable for the full claimed amount. Serve the claim the way your contract and the Act require, and diary the response date so you know exactly when the clock runs out.

6. Remember that "pay when paid" doesn't decide your entitlement

Many subcontracts still contain "pay when paid" or "pay if paid" wording that tries to make your payment depend on the head contractor being paid first. Australia's SOP laws make these provisions ineffective for construction contracts. The High Court confirmed the principle in Maxcon Constructions v Vadasz, which extended it to retention tied to a head-contract event. How this plays out in your situation still depends on the exact wording and circumstances, so if you spot clauses like this, flag them. Our rundown of subcontract clauses that shift risk explains what to watch, and you can run wording past our free clause tools to understand it in plain English.

7. Keep the evidence that backs every line

A payment claim is only as strong as the records behind it. Dockets, site diaries, photos, delay notices and approved variations are what let you defend a figure if it is scheduled down or disputed. Capture that evidence as the work happens, not weeks later when memories and paperwork have gone cold. Good records also make the next claim faster to prepare.

A quick pre-submission checklist

  • Claim is made on or after a valid reference date, and only once for the period
  • Claim is labelled and formatted the way your state's Act requires
  • Work and claimed amount are broken down clearly and tied to your scope
  • Variations, dayworks and any retention release are included with backup
  • Claim is served correctly and the response deadline is diarised
  • Supporting evidence is attached or filed and easy to find

Security of Payment is one of the strongest tools a subcontractor has to get paid, but it rewards good habits. Claim from the right date, format it the way your state requires, include everything you're owed, and keep the evidence to back it. Do that every month and you turn getting paid from a fight into a routine.