Delayed payments remain one of the most significant hurdles in the construction industry. For builders, subcontractors, and suppliers, unpaid progress claims can place immense pressure on cash flow and jeopardise project delivery. This is where the Security of Payment Act (SOPA) plays a vital role.

What is the Security of Payment Act?

The SOPA was introduced to promote prompt payment practices across the construction sector and provide a structured mechanism for resolving payment-related building disputes. While specific legislation varies across different states and territories, the core objective remains the same: helping contractors recover progress payments efficiently without the need for lengthy or expensive court proceedings.

Under the SOPA framework:

• Contractors can issue formal claims for work completed.
• If a payment is disputed or withheld, contractors can pursue a fast-tracked adjudication process.
• Failing to respond within the statutory timeframe can result in a legal debt that is difficult to contest.

In what ways does the Act become your primary tool?

The Act ensures that money continues to flow down the contractual chain. It is an essential safety net that prevents larger companies from unfairly withholding funds from smaller operators, thereby maintaining the financial health of the entire supply chain.

The Act becomes your primary tool when:

• A progress claim has been ignored by a client.
• A payment is disputed without a valid reason.
• A payment schedule (the formal response to your claim) offers significantly less than the amount you invoiced.
• You need to bypass pay-when-paid clauses, which are generally rendered void by the Act.

How does the Security of Payment Act apply to industry professionals?

For many contractors, challenges arise from poorly managed documentation, building disputes, vague contracts, or non-compliant payment claims. Incomplete records or an unclear scope of work can significantly weaken your position during construction resolution.

Ultimately, the Act encourages better record-keeping and clearer communication. It also helps identify potential issues before they escalate into formal disputes as well as protect margins and professional relationships through informed dispute management.

Master dispute resolution with SCB3 – Resolving Disputes

As construction projects grow in complexity, the ability to navigate legal and contractual hurdles is a premium skill. Our SCB3 – Resolving Disputes course provides practical, hands-on training in building dispute resolution. Delivered online and nationally accredited, this course is designed for construction professionals who want to fortify their business against payment risks and lead projects with confidence. 



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