What is a payment schedule and what if you miss it?
A payment schedule is the written reply to a payment claim. It states how much you will pay and why you will pay less. Missing it can leave you exposed to the full amount claimed.
What a payment schedule is
A payment schedule is a written reply to a payment claim. It tells the claimant how much you will pay. If you will pay less than the claim, it says why.
Every Australian state and territory has its own security of payment law with its own time limits for the schedule. For example, Queensland uses the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act). A payment schedule is due within 15 business days of the claim.
What a good schedule includes
- The payment claim it replies to, named by date and number.
- The amount you propose to pay, even if it is zero.
- Each reason for paying less, set out item by item.
- The contract clause or fact behind each reason.
- Supporting records, such as instructions, test results or earlier payments.
What happens if you miss it
In general, a respondent who gives no schedule in time can lose the right to argue about the claim. The claimant may be able to recover the full amount, and may be able to go to adjudication.
Reasons left out of the schedule can usually not be added later. So put every reason in the first time.
Related answers
Questions
Can I send a payment schedule after the deadline?
A late schedule usually has little effect, because the time limit is the point of the process. Check the date the claim arrived and act at once.
Do I have to pay what the schedule says right away?
You should pay the amount you scheduled by the due date in the contract or the law. Paying late can start a separate claim.
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