Security of Payment Act QLD: The Complete Legal Guide

If you're a builder, subcontractor, supplier or consultant working on a Queensland construction project, the Security of Payment Act QLD, normally known as the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (the BIF Act), is the piece of legislation that decides whether you get paid on time, and what you can do if you don't.

This guide breaks down how the BIF Act works in practice: how to make a valid payment claim, what respondents must do when they receive one, how adjudication works step by step, and the trust account reforms that have changed the landscape since 2024. We've also flagged the mistakes that most often cost claimants their statutory rights, so you can avoid them.

This article is general information, not legal advice. If you're facing a live payment dispute, get advice from a construction lawyer before deadlines pass; statutory time limits under the BIF Act are strict and cannot be extended.

What is the Security of Payment Act in Queensland?

The Building Industry Fairness (Security of Payment) Act 2017 (Qld) is Queensland's security of payment legislation and exists to solve a persistent problem in the construction industry: cash flow. The rationale is pay now, argue later. Subcontractors and suppliers sit at the bottom of long contractual chains, and if a head contractor or principal withholds or delays payment, the financial pain flows downhill fast. The BIF Act addresses this by:

• giving every eligible party a statutory right to progress payments, even if the contract is silent on the issue

• imposing strict, non-negotiable timeframes for claiming and responding to payment

• providing a fast-track adjudication process to resolve disputes in weeks rather than the years a court claim might take

• outlawing "pay when paid" clauses

• backing the payment regime with a trust account framework that ring-fences project funds for subcontractors

Because the rights under the BIF Act exist regardless of what the contract says, they are a separate statutory pathway to payment that can't be contracted out of.

Who does the BIF Act apply to?

The BIF Act applies broadly to anyone who carries out construction work or supplies related goods and services under a construction contract in Queensland. In practice, that usually covers:

• head contractors and builders

• subcontractors and trade contractors (electrical, plumbing, carpentry, civil, etc.)

• suppliers of building materials and plant

• consultants such as architects, engineers, quantity surveyors and project managers, where their services relate to construction work

What's excluded

The BIF Act does not apply to a construction contract for domestic building work where the person for whom the work is carried out is a resident owner,  that is, the contract relates to a home the owner lives in, or intends to live in. This is the most common exclusion contractors trip up on, particularly on owner-builder and renovation jobs. Everything in the commercial sector is generally caught.

Key terms you need to know

Security of payment disputes come with their own vocabulary. Understanding these terms is essential before you try to navigate a claim:

• Claimant: The party making the payment claim (usually the contractor, subcontractor or supplier).

• Respondent: The party who received the construction work or goods/services and is liable to pay (usually the principal or head contractor).

• Reference date: The date from which a payment claim can be made. It's either set out in the contract or, if the contract is silent, the last day of the month in which the work was carried out.

• Payment claim: A written demand for payment that is compliant with the BIF Act (which can be a standard tax invoice, provided it meets the BIF Act's requirements).

• Payment schedule: The respondent's written response, stating what they intend to pay, how much they intend to pay, and, importantly, every reason for withholding or reducing payment.

• Adjudicator: An independent, QBCC-registered decision-maker appointed to determine a payment dispute.

• Adjudication certificate: The document a claimant is provided by the registrar allowing the debt to be filed and enforced as a court judgment.

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How to make a valid payment claim

To be valid under the BIF Act, a payment claim must:

1. Identify the construction work (or related goods and services) to which the claim relates;

2. State the amount claimed; 

3. Include any information prescribed by regulation, and

4. Request payment of that amount.

There is no prescribed form; a properly itemised tax invoice can double as a payment claim, but getting the detail right is what matters, because an invalid payment claim can shut you out of adjudication entirely.

Timing: reference dates and deadlines

• You can only submit one payment claim per reference date, though it may include amounts still owing from earlier claims.

• A claim (other than a final claim) must be given before the earlier of the date set out in the contract, or six months after completion of the work or supply.

• A final payment claim must be given before the earliest of the period (if any) under the contract, six months after completion (subject to some nuances), or 28 days after the end of the defects liability period.

• Submitting a claim before the reference date has arrived can render it invalid — don't jump the gun.

The supporting statement requirement

Since 1 October 2020, the party giving a payment claim must give the principal a supporting statement with every payment claim. This is a statutory declaration confirming, among other things, that all subcontractors have been paid everything owed to them as at the date of the claim. Failing to provide one, or providing a false statement, carries serious penalties and is a common trap for head contractors managing multiple trades.

Failing to provide one, however, does not invalidate a payment claim. 

Payment schedules: a respondent's obligations

Once a respondent receives a payment claim, the BIF Act gives them only two options:

1. Pay the full claimed amount by the due date, or

2. Issue a payment schedule setting out the reasons for withholding payment and pay the (lesser) scheduled amount by the due date for payment.

A payment schedule must:

• identify the payment claim it responds to

• state the amount (if any) the respondent proposes to pay

• set out every reason for paying less than the claimed amount, or for withholding payment entirely

The schedule must be given at the earlier date of either 15 business days after receiving the payment claim, or the date specified in the contract.

Why the payment schedule matters so much

If you fail to provide a payment schedule in time, you are generally treated as liable for the full claimed amount and lose the ability to raise defences later in adjudication (or other court proceedings) that you didn't first raise in a (non-existent) schedule. Ignoring a payment claim is also an offence under the BIF Act, carrying penalties of up to 100 penalty units, and can expose a QBCC licensee to disciplinary action, including demerit points or licence suspension.

When must you be paid?

If the contract states a due date, that date applies, subject to statutory caps. If it doesn't, payment is due 10 business days after the payment claim is given.

"Pay when paid" clauses are void

A clause that makes your payment conditional on the respondent first being paid by someone further up the chain (a "pay when paid" or "pay if paid" clause) has no legal effect in Queensland, no matter how the contract is worded. This protection exists specifically to stop cash-flow risk being pushed down onto subcontractors who have no relationship with, or visibility over, the principal's finances.

The adjudication process, step by step

Adjudication is the BIF Act's signature feature: a fast, relatively low-cost dispute resolution process that runs in weeks, not years. The model is pay now, argue later. 

Stage	Typical timeframe
Adjudication application lodged	Generally within 30 business days after receiving a payment schedule (shorter if the respondent has paid less than the amount scheduled)
Adjudicator appointed by the Registrar	Within 4 business days after the QBCC makes the referral to the adjudicator
Adjudication response from respondent	Generally 10 business days after receiving the application for standard claims or 15 business days for complex claims
Adjudicator's decision	Within 10–15 business days after receiving the response (depending on whether standard or complex)
Payment of the adjudicated amount	Within 5 business days of the decision unless the adjudicator sets a later date

These timeframes vary depending on whether a claim is "standard" or "complex" and whether a payment schedule was provided, or whether there is any other nuance under the BIF Act; always confirm current deadlines with a construction lawyer or the QBCC before acting, as missing a step can be fatal to a claim.

If the respondent doesn't pay the adjudicated amount by the due date, the claimant is able to file the adjudication certificate in court as a debt, enforceable in the same way as any other court judgment, without needing to re-argue the merits. It is also an offence not to pay an adjudicated amount on time.

Subcontractors' charges: an alternative remedy

Adjudication isn't the only tool in the BIF Act toolbox. Subcontractors' charges let a subcontractor secure payment directly from money owed further up the contractual chain, for example, from the principal who engaged the head contractor.

To claim a subcontractor's charge, the subcontractor issues a notice of claim to both the contractor who engaged them and the "superior contractor" (the party above that contractor, usually the principal). The superior contractor must then retain funds that would otherwise be paid up the chain to satisfy the charge.

Importantly, a subcontractor cannot use both adjudication and subcontractors' charges for the same claim it is one pathway or the other, and the choice should be made carefully with legal advice, since each has different strategic advantages depending on where the money actually sits.

Recent changes to the BIF Act (2024–2026)

Security of payment law in Queensland is not static, and several older guides online are now out of date. 

If you are relying on older articles or a contract template drafted before 2024, it is worth having a construction lawyer check whether your trust account and record-keeping obligations have changed.

Common mistakes that cost contractors their payment rights

In practice, most disputes under the BIF Act do not turn on complex legal arguments; they turn on process errors made early. The most common ones we see:

• Submitting a claim before the reference date has arisen. Jumping the gun can invalidate the entire claim.

• Issuing more than one payment claim for the same reference date. Only one is permitted; a second claim for the same period is generally invalid.

• Missing the 15-business-day window to issue a payment schedule. Respondents who go silent typically lose their right to dispute the claimed amount later.

• Leaving reasons out of a payment schedule. An adjudicator cannot consider a reason for non-payment that was not included in the original schedule, so a rushed, thin schedule can permanently weaken a respondent's position.

• Accepting a "pay when paid" clause at face value. These clauses are void; don't let a respondent use one to justify late payment.

How QLD compares to NSW and Victoria

Every Australian state and territory has its own security of payment legislation, and while the underlying philosophy is shared, the mechanics differ. Queensland's BIF Act is broadly similar in structure to the Building and Construction Industry Security of Payment Act 1999 (NSW) and the Building and Construction Industry Security of Payment Act 2002 (Vic). All three provide a statutory right to progress payments and a fast-track adjudication process. Key points of difference include differing timeframes for payment schedules and adjudication responses, and variations in how "complex" claims are defined and processed. If you operate across state borders, don't assume the rules or the deadlines are the same everywhere.

FAQs

Does the Security of Payment Act QLD apply to residential renovations? 

Usually no, if you are interested in understanding whether it applies in your specific circumstances, please contact our office to speak with a lawyer. There 

Can a construction contract exclude the BIF Act?

No. The statutory rights under the BIF Act exist regardless of what the contract says, and clauses attempting to contract out of them, such as "pay when paid" provisions, are void.

What happens if I don't respond to a payment claim at all? 

You risk becoming liable for the full claimed amount, losing your ability to dispute it later, and committing an offence under the BIF Act. 

Can I use subcontractors' charges and adjudication together?

No. You must choose one pathway for a given claim, and the right choice depends on where the money sits in the contractual chain; get advice before deciding.

Is an adjudicator's decision final?

Adjudication determinations are enforceable but are an interim measure; they do not finally determine the parties' rights under the contract in the way a court judgment does. Either party can still pursue final resolution through litigation or arbitration, though the adjudicated amount must be paid in the meantime.

Do I need a lawyer to make a payment claim or respond to one?

It is not legally required, but given how unforgiving the timeframes and technical requirements are and how much can turn on the wording of a payment schedule, many parties engage a construction lawyer, particularly once a dispute looks likely to go to adjudication.

Facing a payment dispute under the BIF Act, or need help preparing a payment claim, payment schedule or adjudication application? Speak with our construction law team before your deadline passes because missing a statutory timeframe can mean losing your right to be paid.