What is a payment claim?
- By Book Keeping Pros
- Sources checked 16 Oct 2026
Definition
A payment claim is a written request from a contractor for payment for work done, or for goods and services supplied, under a construction contract. It states the amount claimed and describes what it covers. In New South Wales and Queensland, security of payment law then gives the other party a set time to pay or respond.
For a contractor, the payment claim is the paperwork that turns completed work into a formal request for payment. Each one usually covers a stage of the job, and it is what the other party checks and then either pays or answers with a statement of what they will pay and why.
Each claim is worth recording as its own item: the date or period it covers, when it was sent and received, the amount claimed, any lower amount the other party puts forward, and what is finally paid. Where a claim is also the invoice, it is followed up in accounts receivable like any other unpaid invoice, and any gap between the claim and the payment stays visible until it is settled. For a head contractor, accounts payable records that show each payment to its subcontractors matter too, because in New South Wales its claims on a principal come with a statement about those payments.
In Australia
In Queensland, Business Queensland says a contractor seeking payment has to put in a payment claim, which can be an invoice, asking in writing to be paid for construction work, or for goods and services connected with it, supplied under a construction contract. It says the respondent then has a set time frame to either pay the whole claim or provide the contractor with a payment schedule.
In New South Wales, Building Commission NSW says a payment claim must be in writing, state the amount due and describe the construction work, goods or services claimed, and be served at the time the contract specifies or on or after each reference date. It also says to record the date the respondent receives the claim. It says the reference date is the date the contract sets for making claims, or the last day of the month where the contract sets none, that a claim cannot be repeated for the same reference date, and that money still unpaid from an earlier claim can be included in the next one.
Building Commission NSW says a head contractor serving a payment claim on a principal in New South Wales must include a supporting statement declaring that it has made all payments to the subcontractors it engaged for the work, and warns that it is a serious offence to knowingly give false or misleading information. If the respondent does not intend to pay the whole claim, it says they have a set number of business days after the claim is made to give a payment schedule, a written statement of the amount they will pay and their reasons, or else they must pay the claim in full.
Worked example
| Reference date | Amount claimed (AUD) | Amount paid (AUD) | Notes |
|---|---|---|---|
| 31 Mar 2026 | 18,500.00 | 18,500.00 | Paid in full by the due date |
| 30 Apr 2026 | 22,000.00 | 19,750.00 | Payment schedule gave a lower amount, with reasons |
| 31 May 2026 | 16,200.00 | 16,200.00 | Paid in full by the due date |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Sending a claim that leaves out the amount due or a description of the work, both of which Building Commission NSW lists as required in New South Wales.
- Not noting when the other party received each claim, so the dates cannot be shown later.
- Letting the gap between a claim and a lower payment schedule drop out of the records, so the unpaid amount is not followed up.
Related terms
Related service
Accounts payable and receivable
Bills and invoices tracked, with you approving every payment.
Sources
- Making a payment claim
Building Commission NSW. Current at 24 March 2026, released 24 March 2026. Checked 16 October 2026.
© State of New South Wales. For current information go to www.nsw.gov.au. Licence: CC BY 4.0.
- Payments in the building industry
Business Queensland. Current at 24 June 2026, released 24 June 2026. Checked 16 October 2026.
© The State of Queensland, Business Queensland, licensed under CC BY 4.0 Licence: CC BY 4.0.