NSW has the original and most-used Security of Payment Act (1999) — the model the other East Coast states copied. If you are chasing a payment in NSW, here is exactly how the claim, schedule, adjudication and enforcement work, plus the owner-occupier trap that catches subbies. (For the basics of how SOP works anywhere, start with Security of Payment Explained.)
The payment claim
- In writing and served; it must identify the work and state the claimed amount.
- Since the 2013 amendments, new contracts no longer need the "magic words" — but it is still good practice to state the claim is made under the Act (legacy pre-2013 contracts still require it).
- Reference date: the last day of each month if the contract does not specify.
- Outer limit: the claim can only cover work done in the last 12 months.
The payment schedule (their reply)
The respondent must serve a schedule within the contract time or 10 business days of the claim, whichever ends first. It must identify the claim, state the scheduled amount, and give reasons for any shortfall.
No schedule = you can claim the full amount
If they serve no schedule and do not pay by the due date, they are liable for the full claimed amount as a statutory debt. To take the no-schedule case to adjudication you must first give a section 17(2) notice within 20 business days of the due date, giving them a further 5 business days to produce a late schedule.
Adjudication — via an ANA
NSW runs adjudication through Authorised Nominating Authorities (ANAs): you lodge with an ANA, which appoints an adjudicator. The clocks:
- Schedule less than claimed → apply within 10 business days of the schedule.
- Scheduled but unpaid → apply within 20 business days of the due date.
- No schedule → the section 17(2) path above, then apply within 10 business days of the 5-day window closing.
- The adjudicator has 4 business days to accept, then about 10 business days to determine.
Enforcement
Pay within 5 business days of the determination. If unpaid, request an adjudication certificate from the ANA and file it in court as a judgment debt — Local Court up to $100,000, District up to $1.25M, Supreme above — then enforce by writ or garnishee. There is no cap on the amount an adjudicator can determine.
The owner-occupier trap
SOPA does not apply where the principal is a homeowner living (or intending to live) in the dwelling — that falls under the Home Building Act 1989. The owner-occupier exclusion attaches to the contract WITH the resident home owner, so SOPA cannot be used against an owner-occupier client directly. It does not automatically knock out a subcontractor's claim further up the chain (for example, against the head contractor) just because the end client lives there, so do not write off a valid up-the-chain claim on that basis. If your contract is not with the resident owner, get advice before walking away. Check this before you rely on SOPA — for an owner-occupier dispute use When a Residential Customer Won't Pay.
What counts as "construction work"
Broad: building, alteration, repair, maintenance and demolition; installing systems (power, water, fire, HVAC, security, comms); site work (excavation, foundations, scaffolding, landscaping); and painting. Related goods and services — materials, plant hire, trade labour, design, surveying and engineering — are in scope too, unless caught by the owner-occupier exclusion.
Common mistakes
- Missing the 12-month window to claim.
- Skipping the section 17(2) notice in a no-schedule case.
- Assuming an owner-occupier job is covered — it usually is not.
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