Security of Payment Lawyers Brisbane

If you have performed construction work or supplied related goods and services in Queensland, you have a legal right to be paid — on time and in full. When that right is denied, the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) provides a rapid, cost-effective mechanism to recover what you are owed without the delays and expense of traditional litigation.

Boss Lawyers focuses on security of payment disputes for contractors, subcontractors, suppliers, and principals across South-East Queensland. We act on both sides of SOPA claims — preparing and serving payment claims, drafting payment schedules, and representing parties through the adjudication process.

What Is the Security of Payment Framework in Queensland?

The BIF Act replaced the former Building and Construction Industry Payments Act 2004 (Qld) and introduced significant reforms to Queensland’s security of payment regime. The legislation applies to construction contracts — whether written, oral, or partly both — and provides a statutory right to progress payments for anyone who carries out construction work or supplies related goods and services.

The core purpose of the framework is simple: keep cash flowing in the construction industry. Disputes over payment are inevitable in building and construction, but the BIF Act ensures that these disputes do not leave contractors and subcontractors out of pocket while the disagreement is resolved.

The key mechanisms under the BIF Act include:

• Payment claims — a formal claim for payment served under section 68 of the BIF Act
• Payment schedules — the respondent’s formal response, which must be served within prescribed timeframes
• Adjudication — a rapid, interim dispute resolution process administered by authorised nominating authorities
• Suspension of work — the right to suspend work where payment has not been made following an adjudication decision

Payment Claims Under the BIF Act

A payment claim is the foundation of the security of payment process. To be valid, a payment claim must:

• Be in writing and identify the construction work or related goods and services to which the claim relates
• State the amount claimed
• Include a statement that it is made under the BIF Act
• Be served on the respondent in accordance with the Act

Timing is critical. Under the BIF Act, a payment claim must be served by the date specified in the contract or, if no date is specified, by the last business day of the month in which the work was performed. A claimant may serve only one payment claim per reference date.

Getting the payment claim right is essential. Deficiencies in form or service can render a claim invalid, stripping you of the right to adjudication. Boss Lawyers regularly prepares and reviews payment claims to ensure strict compliance with the legislative requirements.

Payment Schedules — Responding to a Payment Claim

If you receive a payment claim and do not intend to pay the full amount, you must serve a payment schedule within the timeframe specified in the contract, or within 15 business days after the claim is served (if the contract is silent).

A valid payment schedule must:

• Identify the payment claim to which it relates
• State the amount (if any) that the respondent proposes to pay (the scheduled amount)
• If the scheduled amount is less than the claimed amount, indicate why and provide reasons for withholding payment

The consequences of failing to serve a payment schedule are severe. If no payment schedule is served, the respondent becomes liable to pay the full claimed amount — and the claimant can pursue that amount through the courts as a debt due, with very limited defences available to the respondent.

This is one of the most common and costly mistakes we see. Principals and head contractors who ignore or delay responding to payment claims often find themselves facing judgment debts for amounts they genuinely dispute. If you receive a payment claim, act immediately.

The Adjudication Process

Where a payment dispute cannot be resolved through payment claims and schedules, either party may refer the matter to adjudication. Adjudication under the BIF Act is designed to be fast — the entire process typically takes between 10 and 30 business days from application to decision.

How Adjudication Works

1. Application: The claimant lodges an adjudication application with an authorised nominating authority (ANA), such as the Queensland Building and Construction Commission (QBCC) Adjudication Registry or Resolution Institute.
2. Referral: The ANA refers the application to a registered adjudicator.
3. Response: The respondent has the opportunity to lodge an adjudication response within the prescribed timeframe. Critically, the respondent may only raise reasons for withholding payment that were included in the payment schedule — new reasons cannot be introduced at adjudication.
4. Decision: The adjudicator decides the amount payable (the adjudicated amount) and when it must be paid (the due date).
5. Enforcement: An adjudication decision can be filed as a judgment in court and enforced accordingly.

Adjudication Is Interim, Not Final

Adjudication provides an interim determination. It decides who holds the money while the underlying dispute exists — it does not finally determine the rights of the parties. Either party retains the right to commence proceedings in court or pursue other dispute resolution mechanisms to have the dispute finally resolved.

However, the practical reality is that most adjudication decisions are final in effect. The losing party must pay, and clawing back money through subsequent litigation is expensive and uncertain.

Trust Account Requirements

The BIF Act introduced project trust account requirements for certain building contracts in Queensland. These provisions require head contractors on eligible projects to hold progress payments in trust accounts, ensuring that subcontractors’ money is protected if the head contractor becomes insolvent.

Since 1 March 2021, project trust accounts have been mandatory for Queensland Government building contracts valued at $10 million or more. The thresholds are progressively expanding to cover private sector projects. Understanding your trust account obligations — and your rights as a beneficiary — is essential.

Common Security of Payment Issues We Handle

Boss Lawyers regularly assists clients across Brisbane and South-East Queensland with:

• Preparing and serving payment claims that comply with the BIF Act
• Reviewing and responding to payment claims with robust payment schedules
• Adjudication applications — preparing persuasive submissions for claimants
• Adjudication responses — defending respondents against inflated or invalid claims
• Enforcement of adjudication decisions, including filing decisions as court judgments
• Challenging adjudication decisions on jurisdictional grounds through judicial review
• Advising on trust account obligations under the BIF Act
• Negotiating settlements of payment disputes before and after adjudication
• Advising on the interaction between SOPA rights and contractual dispute resolution clauses

Why Timing Matters in SOPA Disputes

Security of payment disputes move fast. The statutory timeframes under the BIF Act are strict and, in most cases, cannot be extended:

• Payment schedules must be served within the contractual timeframe or 15 business days
• Adjudication applications must be made within prescribed timeframes after the payment dispute arises
• Adjudication responses must be lodged within tight deadlines set by the adjudicator

Missing a deadline can mean losing the right to dispute a claim, being locked out of adjudication, or being unable to raise legitimate defences. If you are involved in a payment dispute, seek legal advice immediately.

Why Choose Boss Lawyers for Security of Payment Disputes?

• Focused experience: We regularly act in security of payment matters across a range of project types and values
• Strategic approach: We assess the commercial position, not just the legal technicalities — because winning an adjudication that bankrupts a key subcontractor helps nobody
• Rapid response: SOPA disputes demand urgency. We are structured to respond quickly and meet tight statutory deadlines
• Both sides: We act for claimants and respondents, so we understand the strategies and vulnerabilities on each side
• Brisbane-based: Our office is in the Brisbane CBD at Level 27, Santos Place, 32 Turbot Street — conveniently located for clients across South-East Queensland

Frequently Asked Questions

What contracts does the BIF Act apply to?

The BIF Act applies to construction contracts — agreements under which a person carries out construction work or supplies related goods and services. It applies to written, oral, and partly written contracts. However, it does not apply to contracts for construction work on residential premises where the owner resides or intends to reside (owner-occupier contracts), mining work, or certain other excluded categories.

Can I claim for variations under SOPA?

Yes. A payment claim can include amounts for variations, provided the variation work falls within the scope of construction work under the BIF Act. Disputes over variations — particularly whether a variation was directed, whether the work was extra to the contract, and the value of variation work — are among the most common issues in adjudication.

What happens if the respondent does not pay the adjudicated amount?

If the respondent fails to pay the adjudicated amount by the due date, the claimant may file the adjudication decision as a judgment in court and enforce it using standard enforcement mechanisms (including garnishee orders, seizure of property, and winding-up proceedings). The claimant may also exercise the right to suspend work under the BIF Act.

Can an adjudication decision be overturned?

Adjudication decisions cannot be appealed on their merits. However, a decision may be challenged by way of judicial review in the Supreme Court if the adjudicator made a jurisdictional error — for example, if the payment claim was invalid, the adjudicator failed to comply with the BIF Act, or the decision was affected by a denial of natural justice. These challenges are complex and require experienced legal representation.

How much does adjudication cost?

The costs of adjudication include the adjudicator’s fees (which vary depending on the complexity and value of the dispute), the ANA’s application fee, and legal costs for preparing submissions. Adjudication is generally significantly less expensive than court proceedings, and the adjudicator may decide that one party must bear the other’s adjudication fees in certain circumstances.

Get Legal Advice on Your Payment Dispute

If you are owed money for construction work, or if you have received a payment claim and need to respond, contact Boss Lawyers today. We provide clear, strategic advice on your rights under the BIF Act and, where appropriate, act swiftly to protect your position through adjudication.

Contact Boss Lawyers or call 1300 267 711 for an initial consultation.

This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.

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