All I want for Christmas is … a valid payment schedule

With the end of the year fast approaching, and Christmas at our doorstep, it is important to remain aware of the timing requirements for payment claims and schedules under the applicable security of payment (SOP) legislation for each State and Territory.

To ensure your festive season goes off without a hitch, and inadvertent errors do not end up costing you a lot like Christmas, we have provided the below guidance which will help you understand and prepare for this year's blackout period.

Be aware of when your payment schedule must be served

We have prepared a SOP comparison table and calendar which sets out the non-business days for each State and Territory. This table will assist you with timing your payment schedules accurately in each jurisdiction, given the meaning of 'Business Day' differs depending on the relevant State or Territory. As such, it is critical to appreciate the different timing requirements for each State and Territory so that you do not inadvertently miss any deadlines for serving a schedule.

Review the contract

Further, it is important to consider that your contract may require a progress certificate to be served within a shorter time frame as compared to the period permitted under the relevant SOP legislation for providing a payment schedule. That is to say, the definition of business day provided in your contract may differ to that stipulated in the SOP legislation. Despite this, generally a contractual obligation to provide a progress certificate will not impact the time frame within which you may provide a payment schedule under the relevant SOP legislation. Although, in any case, we note that it would be prudent to serve a payment schedule within the time frame stated in the contract for providing a progress certificate.

Check your registered office

It will also be important for you to ensure arrangements are made to monitor communications sent to your registered office and principal place of business over the Christmas period. This is because claimants will be entitled to serve payment claims at your registered office or principal place of business, in addition to any address stipulated in the contract.

In circumstances where your contract allows for service of payment claims via email, you should ensure the relevant inbox is routinely reviewed, or that emails are forwarded to an appropriate person once received. Moreover, it may be sensible to request that contractors provide their claims for the December period prior to Christmas, with a direction that Christmas claims are to be provided to a specific individual at a stipulated email address.

Conclusion

We recommend that you remain aware of the time frames required for your payment schedules during this Christmas season and note the relevant blackout periods for each State and Territory. It will also be important to review your contracts to ensure you do not inadvertently miss a deadline for serving a payment schedule. If you have any concerns or require advice with respect to a payment claim or a document you suspect may be a payment claim during the Christmas period, please feel free to reach out to our Construction and Infrastructure team.

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