Construction Lawyer & Building Solicitors Sydney | Contracts Specialist Law Firm

Building Payment Schedule:
Secure your Payments on time

Pay your contractors on time for their services. We can assist you with keeping track of your payments through serving a building payment schedule for a payment claim.

A payment claim is necessary for you to be able to get paid. But you still won’t be able to get the payment if your builder does not serve a payment schedule.

A payment schedule is a written response to a payment claim. Understanding how a payment schedule works will enable builders to negotiate better with their contractors.

Parties involved in the Payment Schedule

Claimant

They are the ones who would want to get paid for their work through a payment claim. Contractors, Subcontractors, Suppliers and Consultants are some of the people that can be claimants.

 

Respondent

When claimant issues a payment schedule, the respondent should reply to them through a payment schedule. Builders and Developers are the ones that are paying for construction work so they become respondents to the claim.

Why issue a Payment Schedule?

If you are a respondent, a payment schedule would protect you from dodgy claimants who may claim higher for the work they’ve done. Making a payment schedule will help you review their claim and give options on how you can repay your contractor.
Else, for claimants, a payment schedule is also important because it states when you can receive payment for your work. If the builder doesn’t pay you within their set schedule, it can be a reason for adjudication.
This is part of your right to Security of Payment. Because if the respondent fails to reply, you can suspend their work or worse, sue them instead.

Parts of a Payment Schedule

As prescribed by the Security of Payment Act, a payment schedule indicates the following items:

  • The related payment claim;
  • The time frame you would want to pay the claim;

But in case you don’t agree with the claimed amount, you would have to give an explanation for any of these scenarios:

  • If you plan to pay less than the amount in the claim;
  • If you plan to not pay any or all of the amount in the claim or;
  • If you want to withhold any or all of the claimed amount.

Prepare evidence that can support your stated explanations in the payment schedule.

After indicating these in your payment schedule, you would need to give the document to the claimant. Do post, deliver or fax within 10 business days after receiving the claim.

 

Important Time Periods in Building Payment Schedule

As much as possible in making or receiving a payment schedule, always take note when did you made or receive your payment claim.
One common thing you should take note is the time specified in the contract. This includes when are the exact date/s you should make the payment.
If there is no indicated time, then do the payment schedule 10 business days after the claim’s issue. This is what Security of Payment prescribes.
After 10 days, and you didn’t reply whether you agree or disagree with the amount in the claim, brace yourself. The claimant can file for adjudication and take it to an adjudicator to solve your issues.

  • If you plan to pay less than the amount in the claim;
  • If you plan to not pay any or all of the amount in the claim or;
  • If you want to withhold any or all of the claimed amount.

Prepare evidence that can support your stated explanations in the payment schedule.

After indicating these in your payment schedule, you would need to give the document to the claimant. Do post, deliver or fax within 10 business days after receiving the claim.

Common Mistakes

If you are not careful enough, you can easily get in legal trouble. Here are some common mistakes that you should avoid:

Failing to identify the relevant Sections of the law.

To make sure that you are paying your contractor right, you must know how to comply with Security of Payment. If you don’t, you’re probably heading to an adjudication case.

Failing to assess the claim with the contract.

The respondent forgets to double-check if the amount in the payment claim matches with the one specified in the contract. If this happens, you get to overlook if you are paying more than the agreed amount.

Failing to show evidence to the reduce the claim amount.

For example, if you are proposing to pay lower than what the claim says, better back it up with evidence. If you don’t have a strong evidence to back up your reasons why then expect to pay the original amount.

Best Practices

To avoid these mistakes, take these practices to heart. These can help you avoid worse payment situations. These best practices are:

1.

2.

3.

Review relevant terms in the contract. Double-check the dates when you should expect a payment claim and issue a payment schedule.

Provide sufficient evidence. Look for pictures, reports, product specifications, or any document that can support your explanations.

Provide the right price calculations. You should provide sufficient information and the right computations needed to value construction work.

Need Help in making a Payment Schedule?

Contracts Specialist has enforced the rights of both builders and contractors with their Security of Payment-related issues. If you need help in counter-check payment claims, we can also help you in reviewing your contract. We are knowledgeable about the processes on Payment Schedules so rest-assured that we can give you expert legal assistance.

Should you encounter any payment issues, we can guide you in making the best legal or business decisions possible. Consult now.

Building Payment Schedule Lawyer Sydney - John Dela Cruz Photo | Contracts Specialist