Definition · NSW
What is a payment schedule under the NSW Security of Payment Act?
A payment schedule is the respondent's written reply to a payment claim, stating how much it will pay and why any amount is withheld. Under the NSW Act it must be served within 10 business days of the claim, or sooner if the contract says so. Check current legislation and advice for your contract.
On this page
How payment claims and schedules work
The Building and Construction Industry Security of Payment Act 1999 (NSW) gives people who carry out construction work, or supply related goods and services, under a construction contract a right to progress payments.
The claimant serves a payment claim. The respondent answers with a payment schedule. What the schedule says, and when it is served, shapes everything that follows.
- Payment claim
- The claimant's claim for a progress payment, identifying the work and the amount claimed.
- Payment schedule
- The respondent's written reply: the amount it proposes to pay and, if less than claimed, why.
- Scheduled amount
- The amount the respondent proposes to pay.
- Business day
- Not a Saturday, Sunday or public holiday. Under the NSW Act, 27 to 31 December don't count either.
- Adjudication
- A fast statutory process for deciding a disputed payment claim.
Step by step
Log the claim the day it arrives
Record when and how it was served. Your deadline is the time in your contract or 10 business days, whichever is earlier.
Assess it against the contract
Check the work claimed against the contract, approved variations, rates, previous payments and retention.
Check the evidence
Use site diaries, photos, measurements, delivery dockets and inspection records for the work claimed.
Write the schedule
Identify the claim it answers and state the scheduled amount. For every amount withheld, give the reason, item by item.
Serve it on time, and keep proof
Serve it in a way the contract and the Act allow, and record when and how.
Pay what you scheduled
Pay the scheduled amount by the due date for payment.
Records to keep
Common mistakes
Replying late
If no payment schedule is served in time, the respondent can become liable for the full claimed amount.
Vague reasons
Reasons left out of the schedule generally can't be raised later in adjudication. Be specific.
Counting calendar days
The Act counts business days, and your contract may set a shorter time.
An email that isn't a schedule
A reply that doesn't identify the claim and state an amount may not count as a payment schedule.
Ignoring a claim you think is invalid
Serve a schedule anyway, and give your reasons.
Where Hivenox fits
How Hivenox handles it
Hivenox Construction OS keeps the claim, the contract, the evidence and the schedule on one record for the job.
Cost & Commercial
Progress claims, payment schedules and retention, alongside budgets, commitments and variations.
AP Automation
Matches every subcontractor invoice to the subcontract, PO and approved variations, applies retention and flags over-claims and duplicates before payment.
Contract Management
Head contracts and subcontracts, with obligations, key dates and notices tracked per clause.
Hivenox checks and flags. A person approves, rejects or queries.
