Chapter 9 Payment claims
Standard form contracts set out the information which must be included in progress claims. This generally includes:
- the contractor’s estimate of the value of the work completed, including variations;
- claims for unfixed materials (if permitted by the contract); and
- details of the totals of previous claims, certificates and payments and the amount of retention.
Security of payment legislation
In addition to the contractual provisions relating to claims and payment, all states have legislation which further regulates the claiming and payment of progress claims. See:
- Building and Construction Industry Security of Payment Act 1999 (NSW)
- Building and Construction Industry Security of Payment Act 2009 (SA)
- Building and Construction Industry Security of Payment Act 2009 (Tas)
- Building and Construction Industry Security of Payment Act 2002 (Vic)
- Construction Contracts Act 2004 (WA)
- Building and Construction Industry (Security of Payment) Act 2009 (ACT)
- Construction Contracts (Security of Payments) Act 2004 (NT)
- Chapter 15 – Security of Payment.
Although the standard form contracts have not been amended to reflect all the requirements of the security of payments legislation, it is recommended that appropriate special conditions be included in construction contracts for projects in affected states and territories.
Care must be taken to ensure compliance with both the contractual and legislative requirements.