WA Security of Payment: Which Act Applies to Your Contract

Western Australia is the one state where you must check your contract date before you do anything, because WA is mid-transition between two completely different Security of Payment systems. Run the wrong process and the claim is wasted, even when the debt is real.‍‌​​​‌​​‌​​‌​‌​‌‌‌​‌‌​​‌‌​‌​‌​​​​‍

New to how this works? Start with Security of Payment explained.

Which Act applies — check the contract date first

• Contracts signed on or after 1 August 2022: the Building and Construction Industry (Security of Payment) Act 2021 (WA). The modern, East-Coast-style system — payment claims, payment schedules, adjudication. Use this for anything current.
• Contracts before 1 August 2022: the old Construction Contracts Act 2004 (WA). A different "payment dispute" model, now only relevant for older contracts.

The 2021 Act process (new contracts)

• Payment claim for a progress payment.
• Payment schedule — the respondent has 15 business days to reply with what they will pay and why (WA Building and Energy: security of payment).
• Adjudication — you must apply within 20 business days of becoming entitled (WA: applying for adjudication). If no payment schedule was given, you first give written notice and the respondent gets 5 business days to provide one.
• When payment is due: 20 business days after the payment claim (principal to head contractor), or 25 business days (to a subcontractor, or where there is no head contractor), unless the contract sets an earlier date. This due date is what starts your adjudication clock.
• Adjudication response: 10 business days. Determination: 10 business days (extendable to 20 by agreement).

The legacy Construction Contracts Act 2004 (old contracts only)

A "payment dispute" model: any party can apply for adjudication within 90 business days of the dispute arising, with a statutory right to suspend work after an unpaid determination and a 42-day default payment term where the contract is silent.

Common mistakes

• Running the old CCA 2004 model on a post-August-2022 contract, or the reverse — the wrong process voids the claim.
• Assuming WA works exactly like NSW. The two-model split is WA's own.
• Missing the 20-business-day adjudication window under the 2021 Act.

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