Security Of Payment Act VIC

Debt Recovery for building & construction contractors who have worked on a construction project within the state of Victoria.

About Security Of Payment Victoria

The Victorian Security of Payment Act legislation is the “Building and Construction Industry Security of Payment Act 2002” (BCISPA 2002) and came into force in 2002. For more info see The Object of the Act is to ensure continuity of payment to contractors. The very purpose of this legislation is to make debt collection quick and affordable by ensuring a claimants entitlements under a contract are enforceable.

If you have formed a written or verbal construction contract then you can use the Building & Construction Industry Security of Payment Act 2002 in the recovery of monies you are owed for construction work you have carried out or related goods and services you have supplied. For more information see

If the reason(s) that the Respondent (debtor) is withholding payment relate to a dispute or the Respondents cash flow difficulty the BCISPA 2002 is the ideal  way to expedite payment.

The process starts with the Claimant (creditor) serving a valid Payment Claim. A Payment Claim must conform with the requirements of the BCISPA 2002 and must be served in accordance with the BCISPA 2002.

The next step in the process is for the Respondent to respond within 10 business days to the Payment Claim with a Payment Schedule in accordance with the BCISPA 2002.

If the Respondent does not serve a Payment Schedule on the Claimant within the time allowed the Claimant must serve a 2nd Notice, giving the Respondent a further 2 business days to serve a Payment Schedule on the Claimant.

The next step in the process is to apply for adjudication. Adjudication takes about 1-3 weeks. If the Respondent has served a Payment Schedule on the Claimant then the Respondent is permitted to lodge an Adjudication Response in defence of the Payment Claim lodged by the Claimant. However if the Respondent has not served a valid Payment Schedule in the time allowed under the BCISPA 2002 the are barred from lodging a response (defence).

The next step in the process is for the Adjudicator to deliver his determination. Once the Adjudicator has served both parties with the determination the Respondent has 5 business days to pay the Claimant in full inclusive of the Adjudicators Fee (in full or a % thereof as ordered by the Adjudicator).

If the Respondent does not pay then the usual debt collection enforcement procedure is used to recover the debt.

Brief Description Of Security Of Payment Victoria :


Object of the Act:  To ensure continuity of payment to any person who undertakes to carry out construction work under a construction contract.

Rights to progress payments:   On and from each Reference date any person who has undertaken construction work under a construction contract is entitled to a progress payment.

Payment Claims:   A payment claim must identify the construction work, must indicate the amount claimed, & must state that is is made under the Act.

Payment Schedules:   A payment schedule must identify the payment claim to which it relates & must indicate the amount of the payment (if any)  the respondent proposes to make.

Second Notices:   If no payment schedule is received a claimant must serve a second notice warning the respondent of the claimants intention to apply for adjudication.

Adjudication Applications:   A claimant may apply for adjudication of a payment claim if he disputes a payment schedule or if full payment isn’t received by the due date.

Adjudication Responses:   A respondent may lodge an adjudication response if they have served a valid payment schedule.

Adjudication:   An adjudicator will review both parties applications / responses, written submissions, & written and photographic evidence

Determination:   Once the adjudicator has determined whether the claimant is entitled to payment and who is responsible for his fee the determination is released upon payment of the adjudicators fee.

Act binds the Crown:   This Act binds the Crown in right of Victoria and, in so far as the legislative power of Parliament permits, the Crown in all its other capacities.

Judgement:   If the Respondent does not pay within 7 days an adjudicators certificate can be obtained and entered as a judgement on the court record.

Enforcement / Recovery:   Once judgement is obtained it can be enforced and the monies recovered from the debtor.

For a more detailed explanation of the above visit Security Of Payment Act VIC information.

Security Of Payment Analysis For Your Claim

To discuss and understand exactly where you may be at in the Security Of Payment process and the best way forward call us and we will help you move forward with the process.

Debt recovery & collection of building & construction debts requires a unique approach to each situation – no two Security Of Payment matters are the same.

We treat all matters confidentially and your initial enquiry is a Free Consultation.

Security Of Payment Timelines For VIC Legislation

See the VIC Security Of Payment Flowchart here.