• What is a payment schedule?
• What must a payment schedule include?
• When must a payment schedule be served?
• What is the earliest date that a payment claim can be served?

A person who has received a payment claim made under the SOP Act may either:

• If you agree with the payment claim, pay the claimed amount in full, on or before the due date, or;
• If you disagree with the claimed amount, serve a payment schedule on the claimant within 10 business days after the date the payment claim is taken to be served, or if the contract provides a shorter time, within that time (see notes below regarding deemed date of service).

If you do not do either of these things, the claimant may:

• Apply for adjudication
• Apply to the court to enforce payment
• Suspend works, or the supply of goods and service

What is a payment schedule?
A payment schedule is a respondent’s written response to a payment claim which must be served on the claimant if the respondent does not intend to pay the full amount of the payment claim, on or before the due date for payment.

What must a payment schedule include?
A payment schedule must:

• Be in writing;
• Identify the payment claim to which it relates;
• Indicate the amount of the payment (if any) that the respondent proposes to make (the scheduled amount);
• If the scheduled amount is less than the claimed amount, the schedule must indicate why the scheduled amount is less and
  (if it is less because the respondent is withholding payment for any reason) the respondent’s reasons for withholding payment.

A respondent must include ALL their reasons for withholding payment in their payment schedule.
If a claimant choses to apply for adjudication, a respondent must not include in their adjudication response any new reasons for withholding payment that were not included in their payment schedule, and an adjudicator is prohibited from taking into account any new reasons.

If the claimant applies for adjudication, a respondent who has not served a payment schedule may not serve an adjudication response.

When must a payment schedule be served?
A payment schedule must be served on the claimant within 10 business days after a payment claim is taken to have been served, or if the contract provides a shorter time, within that time (see notes below regarding date taken to be served).

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Payment Schedule – Sample Form

• The payment claim is NOT invalid.
• The payment claim is taken to be served on the earliest date.
• The time within which a person may serve a payment schedule does not commence until the earliest date.

What is the earliest date that a payment claim can be served?

• A payment claim may be served:
  On and from the last day of the named month in which construction work was first carried out or related goods and services provided; and
• On and from the last day of each subsequent named month that further construction work was carried out or related goods and services provided.
• If the contract provides for an earlier date, on and from that date.
• If a notice of termination is served on a party to a construction contract or a construction contract is terminated by agreement, on and from the day on which the contract provides is the day on which the contract is terminated.
• For works performed or goods and services provided between 1 December and 21 December, a payment claim may be served on and from 22 December.
• For works performed or goods and services provided between 22 December and 31 December, a payment claim may be served on and from 31 January in the following year.