Security of Payment Act NSW: Make a SOPA Claim With Confidence
Security of Payment Act NSW guidance for contractors, subcontractors, suppliers and consultants seeking payment for construction work, variations, materials and related services in New South Wales.
Understand the steps, protect the critical timeframes and prepare the records needed to make a clear, well-supported claim under the Building and Construction Industry Security of Payment Act 1999 (NSW).
Payment Claim Checklist
Break down completed work, goods and services.
Show the claimed amount and calculation.
Keep proof of when the respondent received it.
TIMEFRAMES MATTER
What SOPA is designed to do
Support cash flow by providing a fast statutory route to claim a progress payment and, where necessary, have the payment dispute determined by an independent adjudicator.
What is the Security of Payment Act NSW?
The Building and Construction Industry Security of Payment Act 1999 (NSW)—usually called SOPA—gives eligible participants in the NSW construction industry a right to claim progress payments for construction work and related goods or services.
It can apply to written and verbal contracts. It is used up the contracting chain: a subcontractor may claim from a head contractor; a head contractor may claim from a principal; and, in many circumstances, a builder may claim from a homeowner.
SOPA is an interim payment process. It is designed to resolve the immediate payment issue quickly while the parties retain their final contractual rights to pursue a broader dispute if required.
- Head contractors and builders
- Subcontractors and trade contractors
- Suppliers and plant/equipment hirers
- Consultants supplying related services
Need a clear next step?
Start the claim process early—waiting can mean losing a statutory right.
Step 1: Check that your claim is ready
Before serving a payment claim, identify the contract, the relevant work, the claim period and the person who is legally required to pay you. Check the contract first: it may specify a claim date, service method and an earlier payment date.
A strong claim is more than an invoice. It makes it easy for the respondent—and later an adjudicator—to understand exactly what is claimed, how it is valued and what documents support it.
- Contract, scope, drawings and agreed rates
- Work completed, goods supplied and any variations
- Previous claims, certificates and payments received
- Site records, photographs, dockets, emails and approvals
- The claimed amount, including a transparent calculation
- Proof of valid service and the date received
Build the evidence file before a dispute starts
Keep contemporaneous evidence. The best material is organised, dated and tied to each claimed item—not created after the fact.
Security of Payment Act NSW: Key SOPA Timeframes
These are the key statutory maximum periods commonly relied on for current contracts. A contract can impose an earlier relevant date or payment date, so always check the contract and act promptly. Time is generally counted in business days.
| Event | Time allowed | Practical point |
|---|---|---|
| Serve a payment claim | Usually monthly, or as contract allows | Serve on or after the contractual claim date. If the contract is silent, a monthly claim cycle generally applies. |
| Respondent serves payment schedule | Earlier of contract period or 10 business days after receipt | The schedule must identify the claim, state the scheduled amount and give all reasons for any withholding. |
| Principal pays head contractor | Up to 15 business days after claim | Unless the contract requires an earlier due date. |
| Head contractor pays subcontractor—non-residential | Up to 20 business days after claim | Unless the contract requires an earlier due date. |
| Head contractor pays subcontractor—relevant residential work | Up to 10 business days after claim | Residential rules and exemptions need careful checking. |
| Claimant disputes a payment schedule | 10 business days after receiving schedule | Apply for adjudication within this window if the scheduled amount is less than the claimed amount. |
| Scheduled amount is not paid | 20 business days after payment due date | Claimant may apply for adjudication. |
| No schedule and no payment | Give s 17(2) notice within 20 business days after due date | Respondent then has a further 5 business days to serve a payment schedule. |
| Apply after the s 17(2) notice period | 10 business days from the end of that 5-day period | Do not miss the new application window. |
| Respond to adjudication application | Later of 5 business days after application or 2 business days after acceptance | Only reasons already raised in a valid payment schedule can generally be relied upon. |
| Adjudicator’s determination | Usually 10 business days after acceptance | Parties may agree to an extension. |
| Pay adjudicated amount | 5 business days after determination | An unpaid amount may be certified and filed as a court judgment debt. |
For current legislation and official guidance, see the Building Commission NSW SOPA deadline summary and the current Act.
Do not let a timeframe expire.
If a payment claim is ready to be served, begin the process while the statutory window remains open.
Talk through your building-payment dispute
If the payment issue is bound up with defective, incomplete or disputed building work, an independent building consultant can help identify the technical issues before you decide on your next step.
Request a free consultation
Tell us about your building dispute, location and any NCAT or court deadline. Your information stays private.
How to Make a Security of Payment Act NSW Claim
Use this flow as a practical overview. The correct path depends on whether the respondent pays, serves a payment schedule, or does neither.
Serve claim
Send a written payment claim that identifies the work/services and amount claimed.
Receive response
Respondent pays the claim or serves a payment schedule within the required period.
Choose pathway
Act on an underpayment, unpaid schedule or no schedule/no payment.
Adjudication
Apply to an Authorised Nominating Authority and serve the application on the respondent.
Payment schedule received?
For respondents, the payment schedule is the crucial response. It must state the amount proposed to be paid and every reason for withholding any balance.
Step 2: Understand the payment schedule and your options
A payment schedule is not just an administrative reply. If the respondent intends to pay less than the claimed amount, the schedule should identify the claim, state the scheduled amount—including nil, if applicable—and give the reasons for withholding payment.
For a claimant, an underpayment in a payment schedule can lead to adjudication. For a respondent, the reasons in the payment schedule are critical: a later adjudication response generally cannot introduce new reasons for withholding payment.
If no schedule is provided and no payment is made, the claimant may have a court recovery option or may follow the special notice-and-adjudication path under section 17(2). Prompt professional advice is sensible where the facts or contract are complex.
Ready to begin?
Use the SOPA Serve pathway to start your payment claim process.
Technical evidence can make the difference
Many SOPA matters turn on technical questions: what work was in scope, whether a variation was directed, what percentage was completed, whether work meets the contract requirements, and the reasonable value of work or rectification.
Awesim Building Consultants can assist clients and their lawyers with independent building evidence, site inspections, scope and defect analysis, valuation support, photographic schedules and expert reports. We do not provide legal advice or act as an adjudicator.
- Scope, progress and variation assessment
- Independent site inspections and photographic evidence
- Costing, valuation and rectification analysis
- Technical reports to support a payment claim or payment schedule
Independent building evidence
Clear technical evidence helps separate the genuine payment issue from unsupported allegations, incomplete records and unclear scope.
Related building dispute services
A payment claim can involve technical questions about scope, progress, defects, variations and the reasonable value of work. Explore the independent building services that can support a clear and well-evidenced position.
Security of Payment Act NSW FAQs
1. Who can make a SOPA claim in NSW?
Eligible claimants can include head contractors, subcontractors, suppliers, plant/equipment hirers and consultants who have carried out construction work or supplied related goods or services under a construction contract in NSW.
2. Can a subcontractor make a SOPA claim against a head contractor?
Yes. This is one of the most common uses of SOPA. The subcontractor serves the payment claim on the head contractor and must comply with the Act’s service and timing requirements.
3. Can a builder make a SOPA claim against a homeowner?
Often, yes. SOPA applies to many owner-occupier construction contracts entered into from 1 March 2021, but there are important residential exclusions. Obtain advice if the contract is direct with a homeowner.
4. What must a payment claim include?
It should be in writing, identify the construction work, related goods or services claimed, state the amount claimed, state that it is made under the Act, and be served correctly. Supporting records should be attached or available.
5. How long does a respondent have to provide a payment schedule?
The respondent has the earlier of the time required by the contract or 10 business days after receiving the payment claim. A shorter contractual response period may therefore apply.
6. What happens if no payment schedule is served?
The respondent can become liable for the full claimed amount. The claimant may have a right to recover the debt in court or, if no payment is made, use the section 17(2) notice process before applying for adjudication.
7. Can a payment schedule state $0?
Yes. A payment schedule can state nil, but it must identify the payment claim and set out all reasons for withholding the full amount claimed.
8. How quickly does adjudication occur?
It is deliberately fast. After a valid application is accepted, the respondent’s response window is short and the adjudicator usually has 10 business days from acceptance to make a determination, subject to any agreed extension.
9. Can I suspend work if I have not been paid?
In specified circumstances, a claimant may suspend work after giving the required written notice under the Act. The notice period is generally two business days. Take legal advice before suspending work because the facts and contract matter.
10. Is a SOPA adjudication decision final?
An adjudication determination creates an enforceable interim payment outcome. It does not necessarily finally determine all contractual rights between the parties, which may still be resolved in court, arbitration or another agreed process.
Important: This page is general information only and is not legal advice. Time limits are strict and can depend on the contract and facts. Obtain legal advice promptly for your matter. “Start a SOPA Claim” links to SOPA Serve, a service affiliated with Awesim; you are free to choose your own adviser or service provider.