Chasing Late Payments: A Subbie’s Guide to Actually Getting Paid

You did the work. The invoice went out. Three weeks later, nothing — just a head contractor who’s suddenly hard to get on the phone. Most tradies assume the only options are “wait it out” or “get a lawyer,” and neither feels realistic when you’ve got wages and suppliers to pay yourself. There’s actually a faster, cheaper legal pathway most subbies have never used, built specifically for this problem.

The short version (TL;DR)

• Every Australian state and territory has Security of Payment legislation (names vary — e.g. the Building Industry Fairness Act in Queensland) built specifically to stop head contractors sitting on subbie invoices.
• It applies to construction work broadly — plumbing, electrical, carpentry, tiling, painting and more — even if you never had a written contract.
• You have a legal right to issue a formal payment claim, and the other side must respond with a payment schedule within a set number of business days (commonly 10–15, depending on the state) or they lose the right to dispute it later.
• If they don’t pay or don’t respond properly, you can go to adjudication — a faster, cheaper alternative to court, run by an independent adjudicator.
• “Pay-when-paid” clauses (where a head contractor says “I’ll pay you once the client pays me”) are void under these laws — you can’t legally be made to wait indefinitely for someone else’s payment.
• You’re legally protected from retaliation for making a genuine payment claim.

Why this exists

Late payment has always been one of the biggest pressures in construction — head contractors historically used slow payment as free short-term financing, sitting on subbie invoices while their own cash flow stayed comfortable. Every state eventually passed Security of Payment legislation specifically to break that pattern, giving subcontractors, tradies and suppliers a statutory right to be paid on time, without needing to sue.

How the process actually works

1. You issue a payment claim. This is a specific written document — it needs to identify the work, state the amount claimed, and (in most states) explicitly reference the relevant Security of Payment Act. A normal invoice usually isn’t enough on its own; check your state’s exact wording requirements.
2. The other side has a set window to respond. Commonly 10 business days (NSW, VIC) to 15 business days (QLD), though exact timeframes vary by state — they need to either pay in full or issue a formal “payment schedule” disputing some or all of the amount.
3. If they don’t respond in time, they generally can’t dispute it later. This is the sharpest part of the legislation — silence from the other side effectively locks in your claim.
4. If it’s disputed or ignored, you can apply for adjudication. An independent adjudicator reviews the claim and issues a binding decision — usually far faster and cheaper than going to court.
5. You may also have other options depending on your state — for example, Queensland’s QBCC runs a separate “monies owed” complaint process for licensed contractors, and some states allow a subcontractor’s charge against money owed further up the contractual chain.

What this legislation actually stops your head contractor doing

• “Pay-when-paid” clauses are void. A head contractor can’t legally make your payment conditional on their client paying them first.
• You can’t be contracted out of these rights. Even if a contract tries to waive Security of Payment protections, those clauses generally don’t hold up.
• It applies without a written contract. Verbal agreements for construction work are still covered in most states — a genuine advantage for smaller subbies who don’t always get formal paperwork signed before starting a job.

What to actually do when a payment’s overdue

1. Start with a direct, dated written request (email, not just a text) — this becomes useful evidence regardless of what happens next.
2. If that goes nowhere, look up your state’s specific Security of Payment Act (the name and timeframes differ by state — NSW, VIC, QLD, WA and others each have their own version) and prepare a formal payment claim referencing it.
3. Keep every document — quotes, variations, site instructions, photos of completed work — from the start of a job, not just once payment becomes an issue. Adjudicators work from paperwork, not verbal accounts of what was agreed.
4. If you’re a QBCC-licensed contractor in Queensland, the monies owed complaint process is a separate, additional avenue worth checking alongside the SOP process.
5. For genuinely large or repeat problem clients, a short consult with a construction lawyer or your industry association is usually worth the cost before you’re several jobs deep with the same slow payer.

Frequently asked questions

Do I need a written contract for this to apply?
No — most state Security of Payment Acts apply to construction work regardless of whether the contract was written or verbal.

What if the head contractor says they haven’t been paid by their client yet?
That’s generally not a valid reason to withhold your payment — “pay-when-paid” clauses are void under Security of Payment legislation in every state.

Is adjudication the same as going to court?
No — it’s a separate, generally faster and cheaper statutory process run by an independent adjudicator, designed specifically as an alternative to court for construction payment disputes.

Can a head contractor blacklist me from future work for making a claim?
Security of Payment legislation includes protection against retaliation for making a genuine payment claim, though as always, document everything and consider getting advice if you’re worried about the relationship.

This guide is general information only — not legal advice. Security of Payment legislation and timeframes vary by state and change over time; confirm the current process for your state and situation with your state’s building/construction regulator or a construction lawyer before acting.

Sources:
Queensland Building and Construction Commission — Commercial payment dispute
Business Queensland — Payments in the building industry
Security of Payment legislation exists in every Australian state/territory under different names — check your own state’s building/fair trading regulator for the exact process and timeframes that apply to you.