How does the Security of Payment Act work in Victoria?
Last reviewed July 5, 2026
The Security of Payment Act in Victoria makes sure subcontractors and suppliers get paid on time. It allows them to claim payments for work done, even if there's a dispute. If payments are late, they can serve a payment claim and, if needed, go to adjudication for a quick resolution.
Key points
- It applies to construction contracts.
- Subcontractors can claim payments for work done.
- Adjudication can resolve disputes quickly.
The Act sets out specific timeframes for payment claims and responses. If a principal or head contractor doesn't pay on time, the subcontractor can escalate the matter. It helps keep cash flow steady in the construction industry, which is critical for smaller businesses.
How Alloovium helps
Alloovium can track payment claims and deadlines, making sure 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.