Legal Project Management Plan & Checklist
Purpose of this Guide: Open this plan when your client is a head contractor, subcontractor, or supplier in the Victorian building and construction industry who has performed construction work or supplied related goods and services under a construction contract and has not been paid. Use this plan to serve a payment claim and pursue rapid statutory adjudication under the Building and Construction Industry Security of Payment Act 2002 (Vic). This plan incorporates the amendments introduced by the Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Act 2025, which commenced on 15 April 2026. This parent plan covers the standard adjudication pathway where a payment schedule has been served. Three forks are available: where no payment schedule is served (Default Adjudication via s 18(2) Notice), where performance security release is sought at the end of the defects liability period (Performance Security Release), and where court registration and principal redirection is pursued after an adjudication determination (Court Enforcement and Principal Redirection). Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Jurisdiction: Victoria, Australia. Adjudications are administered by an Authorised Nominating Authority (ANA) approved under the Act. Court enforcement is conducted in the Magistrates Court (claims up to $100,000), County Court (any amount), or Supreme Court (claims above $200,000). Three forks are available from this parent plan. Verify current guidelines on the official . Access services via the .
Use this fork when a Payment Claim has been properly served under the Building and Construction Industry Security of Payment Act 2002 (Vic) and the respondent has failed to serve any Payment Schedule within 10 business days of service. In this situation, the claimant must serve a Section 18(2) Notice of Intention to Apply for Adjudication within 10 business days of the statutory payment due date passing. The respondent then has exactly 5 business days from receipt of this notice to provide a payment schedule. If they remain silent, the claimant has a strict 5-business-day window to lodge the adjudication application with the ANA. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Use this fork when your client holds performance security (such as a bank guarantee, retention money, or performance bond) under a construction contract and the defects liability period has expired. The Building and Construction Industry Security of Payment Act 2002 (Vic), as amended from 15 April 2026, gives claimants a statutory right to demand the release of performance security after the defects liability period under s 9(2) and s 17A. The respondent has a maximum of 20 business days to release the security under s 12. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Use this fork when an adjudication determination has been made in favour of the claimant and the respondent has failed to pay the adjudicated amount within 5 business days. This fork covers two parallel enforcement mechanisms: (1) registering the Adjudication Certificate as a judgment debt in the correct court under s 28R, and (2) bypassing the respondent to recover the debt directly from the respondent's principal under Division 4 of the Act. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
The Process at a Glance: The process begins with a gateway analysis confirming the work is within Victoria, the contract is not a domestic owner-occupier contract, and the claimant entity is solvent. A Payment Claim is drafted identifying the construction work or related goods and services, stating the claimed amount, and including the mandatory statutory endorsement required by s 14(2). The claim is served on or after the last day of the calendar month, and must be served within 6 months after practical completion under s 14C. The respondent has 10 business days to serve a Payment Schedule under s 15. If a schedule is served disputing the claim, the claimant has 10 business days from receipt to lodge an Adjudication Application with an ANA. A copy must be served on the respondent within 3 business days of lodgement. The adjudicator determines the adjudicated amount, and the respondent has 5 business days to pay. If unpaid, the claimant applies to the ANA for an Adjudication Certificate under s 28Q and files it as a judgment debt in court under s 28R. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Key Legislation and Case Law: Building and Construction Industry Security of Payment Act 2002 (Vic) - s 9 (statutory right to progress payments), s 9(2) (right to release of performance security), s 12 (20 business day cap on payment and security release terms), s 13A (unfair time bar declarations), s 14 (payment claim requirements and mandatory endorsement), s 14C (6-month limitation period from practical completion), s 15 (payment schedule - 10 business day deadline), s 17A (performance security claim process), s 17H (5 business day notice before recourse to performance security), s 18(1)(a) (adjudication application within 10 BD of schedule receipt), s 18(2) (notice of intention to apply - mandatory pre-step where no schedule served), s 21 and s 23 (no new reasons rule - respondent barred from raising reasons not in schedule), s 28Q (adjudication certificate), s 28R (court registration of certificate as judgment debt). Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Act 2025 (Vic) - commenced 15 April 2026. Key cases: Facade Treatment Engineering Pty Ltd (in liq) v Brookfield Multiplex Constructions Pty Ltd [2016] VSCA 247 - company in liquidation cannot serve payment claims, pursue adjudication, or enforce determinations under the Act.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Security of Payment Act Claim (Claimant) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for COMMERCIAL_LAW cases, outlining the standard DISPUTE_LITIGATION process. Utilize these tracking templates to manage your legal cases efficiently.
Confirm the claimant is eligible to use the VIC SOP Act regime and that no statutory bars (insolvency, domestic owner-occupier, non-VIC work) apply.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
The territorial nexus under the Act is mandatory and cannot be contracted out of. A claimant doing work in VIC cannot be denied the Act's protections by a NSW or QLD choice-of-law clause.
The domestic building exclusion under s 7(2)(b) is narrow: it only excludes contracts between a builder and a residential owner-occupier who is not in the business of building. Where the principal is a developer or an entity engaged in the business of construction, the Act applies even if the finished product is a residence.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Facade Treatment Engineering Pty Ltd (in liq) v Brookfield Multiplex Constructions Pty Ltd [2016] VSCA 247 is binding appellate authority in Victoria. The Court of Appeal held that the progress payment regime is only available to entities that are active and capable of completing their construction obligations. A company in liquidation cannot serve payment claims, pursue adjudication, or enforce determinations under the Act. The statutory summary judgment mechanisms are incompatible with the mutual set-off requirements under s 553C of the Corporations Act 2001 (Cth).
Serve a valid payment claim under s 14 that triggers the 10-business-day response window for the Payment Schedule.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
Conduct a thorough review of all filed materials to ensure compliance with court requirements, verify service obligations have been met, and prepare for the next procedural milestone.
Assess the strategic considerations for interim applications, prepare supporting evidence, and draft the necessary documentation for urgent or time-sensitive relief sought.
Assess the respondent's position and determine the correct adjudication pathway - disputed schedule or no-schedule default route.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
The 10-business-day response window for payment schedules (reduced from the pre-amendment period) is a strict statutory deadline under the amended Act. The Christmas shutdown period (22 December to 10 January inclusive) was added to the business day exclusions by the 2025 amending Act and applies from 15 April 2026.
Timeline summary from Payment Claim service (post-April 2026):
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
The no-new-reasons rule (amended s 21 and s 23) is a powerful tactical advantage for claimants. Under the amended Act, the respondent is strictly barred from raising in their adjudication response any reason for non-payment that was not set out in the initial payment schedule. Adjudicators are also barred from considering any such new reason.
Section 13A empowers the adjudicator to declare a notice-based time bar unfair and void. This is particularly valuable where the contract contains a strict notice requirement that, if applied, would extinguish a legitimate variation or latent conditions claim.