As the holiday period fast approaches, it is important to ensure that your organisation has appropriate measures in place to manage risks arising under security of payment legislation in Australia.

Timeframes under security of payment legislation are unforgiving and this can sometimes lead to predatory practices during the holiday shutdown period.

Remember to take steps to ensure that you have a process in place to promptly identify any payment claims or adjudication applications received and bring them to the attention of the relevant individual within your organisation in order that they are responded to within the relevant timeframe.

Be aware that if your organisation has multiple places of business, it may be possible for claims to be validly served at any of those places of business (even if in a different state to the work to which the claim relates).

We have prepared the below schedule to highlight the timing for responding to claims in each state and territory to assist as an initial reference point.

The schedule is not legal advice and is just a guide. Please consult the relevant legislation and the specific provisions of your contract in determining the time for making and responding to payment claims.

Counting days

You should ensure that you are counting the appropriate days when calculating time. The relevant legislation and/or contract may provide for the counting of “business days”, “calendar days” (or “days”), or “working days”, and their definitions may exclude days over the holiday period.

For example, in NSW the legislation provides that a payment schedule is to be provided within the earlier of 10 business days or the time provided under the relevant contract. Over the holiday shutdown period contracts with a 14 calendar day provision will require service of a payment schedule earlier than 10 business days allowed under security of payment legislation. 

Click here to view the table.