How does the Security of Payment Act work in NSW?
Last reviewed July 5, 2026
The Security of Payment Act in NSW provides a legal framework for quick payment in construction. Contractors can submit payment claims, and if not paid, they can initiate adjudication. This process is designed to avoid lengthy disputes and ensure cash flow on site.
Key points
- Payment claims can be submitted by contractors.
- Adjudication is available if payment is delayed.
- Helps maintain cash flow in construction projects.
In NSW, the Act allows contractors and subcontractors to claim payments for work done. If a claim is disputed, the contractor can seek adjudication, which is a fast-tracked process to resolve payment issues. This keeps the project moving without getting bogged down in legal disputes.
How Alloovium helps
Alloovium helps track payment claims and deadlines, ensuring you stay on top of your obligations.
See how it worksRelated questions
- How do I lodge an adjudication under the Security of Payment Act in NSW?
- How do I lodge an adjudication under the Security of Payment Act in Queensland?
- How do I lodge an adjudication under the Security of Payment Act in SA?
- How do I lodge an adjudication under the Security of Payment Act in Tasmania?
- How do I lodge an adjudication under the Security of Payment Act in the ACT?
- How do I lodge an adjudication under the Security of Payment Act in the NT?
General information for Australian construction professionals — not legal advice. Verify jurisdiction-specific requirements with the relevant regulator.