SOPA Payment Claim Disputes

SOPA Payment Claim NSW: Lawyers for Claimants and Respondents

A SOPA payment claim in NSW is a claim for a progress payment made under the Building and Construction Industry Security of Payment Act 1999 (NSW). If you receive one, you generally have 10 business days to respond with a payment schedule, and if you do not you can become liable to pay the full amount claimed. If you make one, the Act gives you a fast adjudication process and a judgment you can enforce.

Reviewed by Sam Saadat, Principal Lawyer, Invictus Legal. Last reviewed: 7 October 2026

Invictus Legal acts for builders, subcontractors, suppliers, developers and principals in SOPA payment claim disputes across Sydney and NSW. The time limits are short and strict, and a missed deadline usually decides the outcome. Speak to an experienced construction payment lawyer early. This page reflects the Act as currently in force; the current version on the NSW legislation website applies from 20 August 2024.

Who can make a SOPA payment claim in NSW?

Anyone who has undertaken under a construction contract to carry out construction work or to supply related goods and services is entitled to progress payments (s 8). The contract can be written or oral (s 7). Under s 8(2), there is no entitlement where the contract does not comply with section 4 of the Home Building Act 1989 (NSW), or where it involves residential building work done in contravention of section 92 of that Act. Parties cannot contract out of the Act (s 34).

What must a payment claim contain?

A payment claim must identify the work or goods and services, state the claimed amount, and state that it is made under the Act (s 13(2)). Generally only one payment claim may be served in each named month, unless the contract provides otherwise (s 13(5)). A claim may be served from the last day of each named month, or an earlier date the contract allows. After termination it may be served from the termination date (s 13(1A)-(1C)). The claim must be served within the contract period or 12 months after the work was last carried out, whichever is later (s 13(4)). A head contractor serving a principal must include a supporting statement declaring that subcontractors have been paid (s 13(7)). Failing to do so is an offence.

How long do I have to serve a payment schedule?

You must provide a payment schedule within 10 business days after the payment claim is served, or any earlier time the contract requires (s 14(4)). The schedule must identify the claim, state the amount you propose to pay, and, if that is less than the claimed amount, give all your reasons for paying less (s 14(2)-(3)). Put every reason in. If the matter goes to adjudication you cannot raise reasons that were not in the schedule (s 20(2B)).

What happens if no payment schedule is served?

If no schedule is served in time, the respondent becomes liable to pay the full claimed amount on the due date (s 14(4)). If it is not paid, the claimant can sue for it as a debt or apply for adjudication, and can give notice of intention to suspend work (s 15(2)). In a debt claim the respondent cannot bring a cross-claim or raise defences arising under the contract (s 15(4)). Under s 11, unless the contract sets an earlier date, payment to a head contractor falls due 15 business days after the claim, and payment to a subcontractor 20 business days after. Different rules apply to exempt residential construction contracts.

When must an adjudication application be made?

Adjudication time limits depend on what went wrong (s 17):

• Schedule for less than the claim: apply within 10 business days after receiving the schedule.

• Scheduled amount not paid: apply within 20 business days after the due date.

• No schedule and no payment: first serve notice of intention to apply within 20 business days after the due date. The respondent then has 5 business days to provide a schedule, and the application must be made within 10 business days after that 5-day period ends.

The application is made in writing to an authorised nominating authority and must be served on the respondent. The respondent can lodge an adjudication response within 5 business days of receiving the application, or 2 business days after notice of the adjudicator's acceptance, whichever is later. It can do so only if it served a payment schedule in time (s 20).

How is an adjudication determination enforced?

The adjudicator must decide within 10 business days, unless the parties agree to more time (s 21(3)). If any conference is called, the parties are not entitled to legal representation (s 21(4A)). The respondent must pay the adjudicated amount within 5 business days after being served with the determination, unless the adjudicator sets a later date (s 23). If it does not pay, the claimant can obtain an adjudication certificate and file it as a judgment debt in any court of competent jurisdiction (ss 24-25). A respondent who applies to set that judgment aside cannot raise contractual defences or cross-claims, and must pay the unpaid amount into court as security (s 25(4)).

Is a SOPA adjudication final?

No. Adjudication is an interim payment process. Contractual rights are preserved, and a later court or tribunal must allow for amounts paid under the Act (s 32). Respondents who have paid can still pursue the final contractual position. Court review of a determination is narrow: the High Court has held that the Supreme Court cannot quash a determination for an ordinary (non-jurisdictional) error of law (Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd [2018] HCA 4). If you think a determination is wrong, get advice immediately.

Do you act for claimants and respondents?

Yes. For claimants we prepare compliant payment claims, adjudication applications and enforcement. For respondents we prepare payment schedules within the deadline, adjudication responses and challenges. Where a SOPA dispute becomes a broader contract claim, see our breach of contract disputes and commercial litigation pages.

What does it cost?

Cost depends on how much is claimed, the volume of documents and expert material, and whether the dispute moves to court. Fees for commercial matters are determined by the scope of work involved, and we issue a costs agreement before we commence any work, so you have full transparency from the start.

Frequently asked questions

How many days do I have to respond to a payment claim in NSW?

You must provide a payment schedule within 10 business days after the payment claim is served, or an earlier time if the contract requires it (s 14(4)). If you miss the deadline you can become liable for the full claimed amount.

Can I raise new reasons in my adjudication response?

No. Under s 20(2B) a respondent cannot include reasons for withholding payment in the adjudication response unless they were already in the payment schedule. That is why the schedule must give every reason.

How long does SOPA adjudication take?

The adjudicator must decide within 10 business days after the response is lodged (or after the response period ends), unless the parties agree to more time (s 21(3)). The respondent then has 5 business days after being served with the determination to pay, unless the adjudicator sets a later date (s 23).

How long after finishing work can I serve a payment claim?

A payment claim must be served within the period set by the contract or within 12 months after the work was last carried out, whichever is later (s 13(4)). After termination, a payment claim may be served from the date of termination (s 13(1C)).

Can a contract exclude the Security of Payment Act?

No. Section 34 provides that the Act has effect despite any contrary contract term. Any term that excludes, modifies or restricts the Act, or tries to deter a person from using it, is void.

Get advice before the deadline

Call Invictus Legal on 02 8553 0500, or 0410 600 230 if a payment schedule or adjudication deadline is days away, or book online. Visit our commercial law hub for related services.

This page is general information only and is not legal advice. Contact Invictus Legal to discuss your situation.