Security of Payment SA: Payment Claims and Adjudication in South Australia

What it is

The Building and Construction Industry Security of Payment Act 2009 (SA) is the South Australian statute that lets any person who carries out construction work or supplies related goods and services under a construction contract claim and recover progress payments. It commenced on 10 December 2011 and broadly follows the East Coast model.

The Act runs alongside the contract. It cannot be contracted out of. A clause that attempts to exclude, modify or restrict the operation of the Act is void to that extent.

Who it applies to

The Act covers most construction contracts carried out in South Australia, including residential, commercial and civil work. Like the other East Coast Acts, it has a residential carve-out. Section 7 excludes construction contracts where the work is residential building work within the meaning of the Building Work Contractors Act 1995 (SA) and the principal is the resident or future resident of the home.

In practice that means a builder cannot bring a Security of Payment claim against an owner-occupier. The Act still applies between builders and their subcontractors and suppliers, and between subbies and their own downstream trades.

Payment claims and reference dates

A payment claim under section 13 must:

• be in writing
• identify the construction work or related goods and services
• state the claimed amount
• state that it is made under the Act

Reference dates are set by the contract. If the contract is silent the default reference date is the last day of each named month in which work was first carried out, and the last day of each subsequent month. Only one payment claim may be served per reference date, although a claim can include amounts previously claimed but unpaid.

Payment schedule and the 15-business-day rule

A respondent has 15 business days from receiving the payment claim to give a payment schedule under section 14, or a shorter period if the contract specifies one. The schedule must:

• identify the payment claim
• state the scheduled amount the respondent proposes to pay
• give reasons for any difference between claimed and scheduled amounts
• give reasons for withholding any payment

The SA scheme uses 15 business days as the default, longer than the 10 days used in NSW and Victoria. This is one of the most-missed compliance differences for builders working across state borders.

If the respondent does not give a schedule within the required period it becomes liable to pay the full claimed amount on the due date. The claimant can either sue for the amount as a debt or apply for adjudication after giving a second-chance notice of at least 5 business days.

Adjudication

If the schedule is given but the scheduled amount is less than claimed or the scheduled amount is not paid, the claimant has 15 business days to apply for adjudication through an authorised nominating authority under section 17. The adjudicator must determine the application within 10 business days of acceptance, or longer with consent.

Adjudication is interim. The determination is enforceable as a judgment debt but the parties retain their contractual rights to argue the merits in court or at arbitration later. SA adjudicators routinely award progress amounts that go straight into enforcement.

Right to suspend work

Under section 25 a claimant who has not been paid the scheduled or adjudicated amount may suspend work after at least 2 business days written notice. The claimant is not liable for any loss or damage caused by lawful suspension and is entitled to an extension of time.

What this means for TradeLens compliance

For SA builders the operating discipline is calendar control and template hygiene. Use a SA-specific 15-business-day diary for payment schedules. Avoid copying NSW or Victorian templates that bake in shorter deadlines or different reference-date language. Record the date of receipt for every claim so the deadline calculation is defensible.