The due date for payment is the date on which a payment claim becomes due and payable in accordance with the terms of the contract. However for most, but not all contracts, the Act sets a maximum time period for the due date for payment which overrides any contractual provision which is longer.
Calculating the due date for payment correctly is important because, if there is a payment dispute, certain rights and obligations are calculated from that date:
Unless the contract provides for a shorter period, a progress payment:
However if the contract was made before 21 April 2014 or applies to a residential property in which the owner resides, or intends to reside, and the contract was NOT made directly with the owner, a progress payment becomes due and payable an accordance with the terms of the contract (i.e. the 15/30 day maximum period does not apply) or, if the contract makes no provision, 10 business days after a payment claim has been made.
The due date for payment (regardless of any contract provision) can't occur prior to service of a payment claim. Any subsequent payment claim served will generate a new due date for payment.
Our flowchart is designed to assist parties work out the applicable due date for payment of their contract.
© 2024 Adjudicate Today Pty Limited. This website outlines rights and obligations in an easy to understand format.
It does not go into details and does not cover all situations. For a full appreciation of your rights and obligations, consult the Act and/or obtain legal advice from a building and construction law specialist.