The most common question that we are asked is:
What To Put On My Invoice For The Security Of Payment Act
“What should we put on our invoice for the security of payment act?”
As we all know only too well the building and construction industry is notoriously bad for payment disputes and non-payment.
And without a shadow of a doubt the best way to deal with such a dispute is through adjudication under the building and construction industry security of payment act legislation.
So what should you put on your invoice so that you can rely on the security of payment act legislation when you need to?
Firstly, let’s do away with the idea that putting a certain sentence on your invoice about the security of payment act is a magic wand or an insurance policy that guarantees past payment or payment at all. While as it plays its part there other critical components to what makes for a successful payment claim. Let’s look at them one by one.
No. 1 – Properly Describe The Respondent
You must correctly name the entity that you have contracted with, be that entity, an individual, a company, or a trust. And you must include their ABN number and or their ACN number.
ABN Lookup and, ASIC Search are good tools for verifying the accuracy of an entity’s name and ABN and ACN numbers.
And, crucially, the best time to get this item sorted is at the time of issuing your quotation. Don’t be shy, ask your prospective client for the name and ABN number etc that you should address your quotation to. Then do your own checks to make sure sure everything checks out.
In the case of an individual your quotation (and subsequently all of your payment claims etc) should look like this:
John Peter Smith
ABN 12 123 123 123
trading as
Smith’s Building
In the case of a company your quotation (and subsequently all of your payment claims etc) should look like this:
Smiths Building Pty Ltd
ACN 123 123 123
In the case of a trust your quotation (and subsequently all of your payment claims etc) should look like this:
Brown Family Pty Ltd (ACN 123 123 123)
as the trustee for the Brown Family Trust
ABN 12 123 123 123
trading as
Brown’s Building & Construction
If you don’t correctly describe the respondent on your progress claim (and quotation and contract etc) nothing else matters because your payment claim is defective and invalid
No. 2 – Properly Describe The Work That You Are Claiming For
You must clearly and comprehensively describe the work that you are claiming for.
No. 3 – You Must Show How You Have Calculated The Amount Of Your Claim
As is the case above your claim must me itemised and quantified and it must also show the individual costs and rates etc for each item.
No. 4 – What To Put On Your Invoice To Make It A Payment Claim Under The Security Of Payment Act Legislation
The correct endorsement to invoke the Security Of Payment Act legislation varies from state to state so call us on 1300 732 687 and we can help you determine the correct endorsement for your payment claim.
No. 5 – When To Serve A Payment Claim
The time of service for monthly payment claims varies from state to state so call us on 1300 732 687 and we can help you determine the correct day of the month for serving your payment claim.
No. 6 – Your Payment Claim Must Be Properly Served
When you are conducting your searches early on in the process make a note of the ‘Principal Place Of Business’ of the individual or the company.
You can the serve the payment claim by express post and track it. It is crucial that you have evidence of service.
Alternatively if your client has a proprietary email address such as John@smithsbuilding.com.au you can email the progress claim as long as you can request a ‘delivery receipt’ and or a ‘read receipt’ using Microsoft Outlook etc…
Service by email to non-proprietary email accounts such as gmail or iCloud etc is not necessarily acceptable service.
