FACT SHEET 3
Making a Payment Claim
This fact sheet explains how to make a
payment claim under the Building and
Construction Industry Security of Payment
Act 2002.
WHAT IS A PAYMENT CLAIM?
period specified in the contract – whichever is
the later.
A reference date is the date on which a claim
may be made. If the contract does not specify
reference dates, the SOP Act provides for them
as follows:
A payment claim is a claim for a progress
payment which is made under the Building and
Construction Industry Security of Payment Act
2002 (the SOP Act).

A client or purchaser who receives a payment
claim from a contractor must either pay the
contractor the claimed amount when it's due, or
give them a payment schedule within 10 business
days (or less if the contract says so).

A sample form payment claim is available on the
VBA website.
BEFORE MAKING A PAYMENT CLAIM
Before making a payment claim, the contractor
should ask the following questions:
Does the SOP Act apply to this
contract?
The SOP Act applies to most contracts to carry
out construction work or supply related goods
and services. The contract may be written, oral
or a combination of both.
It does not apply to contracts to carry out
domestic building work with a building owner
unless the building owner is in the business of
building residences and the contract is entered
into in the course of, or in connection with, that
business.
When can you make a payment
claim?
A payment claim must be served within three
months after the reference date, or within the
© State of Victoria, Victorian Building Authority 2016

Progress payments – 20 business days after
the work was first carried out or goods and
services were first provided. Subsequent
payment claims may then be made every 20
business days until the job is completed.
Single or one-off payments – The day after
the work was last carried out or the goods or
services were last supplied under the
contract.
Final payments – The day after the end of
any period under the contract for rectifying
defects or omissions or the day after the final
certificate is issued. If neither of these
applies, the reference date is the day after
the work was last carried out or the goods or
services were last supplied under the
contract.
REQUIRED INFORMATION
To be valid, the payment claim must do all of the
following:
1. Identify the construction work or related
goods and services to which the payment
relates
To find out what kinds of work and services
are covered by the SOP Act, see Fact Sheet
No. 1: The Security of Payment Scheme.
2. Indicate the amount of money that the
claimant claims is due (the ‘claimed
amount’)
The payment claim must take into account
the contract price for the construction work
or supply of related goods and services, any
other rates or prices set out in the contract
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FACT SHEET 3
and the estimated cost of rectifying any
defect.
Your payment claim may include claimable
variations but not excluded amounts. For
more information about these amounts, see
Fact Sheet No. 4: Claimable Variations and
Excluded Amounts.
3. Include the ‘Security of Payment Statement’
The payment claim must notify the respondent
that it is made under the SOP Act. It must say:
‘This is a payment claim under the Building
and Construction Industry Security of
Payment Act 2002’.
Serving a copy on the respondent
A copy of the payment claim must be served on
the client or purchaser (the ‘respondent’) in one
of the following ways:

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

Delivered in person. It is ‘served’ when the
respondent receives it.
Lodged during business hours at the
respondent’s ordinary place of business. It is
‘served’ when it is received at that address.
Sent by post to the respondent’s ordinary
place of business. It is ‘served’ two business
days after the day it is posted.
Faxed to the respondent’s ordinary place of
business. It is ‘served’ at the time it is
received unless it is received after 4pm. If it is
received after 4pm, it is taken to have been
‘served’ on the next business day.
Provided in any other manner specified in
the contract.
Want to know more?
Please submit an enquiry or call us on
1300 815 127.
Victorian Building Authority
733 Bourke Street Docklands VIC 3008
www.vba.vic.gov.au
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