Security of payment in Victoria

What changed in Victorian security of payment in 2026?

Almost everything that made Victoria the odd one out. From 15 April 2026 the excluded amounts and claimable variations regime is repealed (ss 10A and 10B), so time-related costs and disputed variations are claimable like anywhere else. A 20 business day payment cap applies (s 12(1B)), performance security release is claimable (ss 17A to 17F), and unfair notice-based time bars can be declared of no effect (s 13A).

The reforms were made by the Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Act 2025 and apply to construction contracts entered into before commencement as well as after. Advice and templates written for the pre-2026 Act are out of date.

Who can serve a payment claim in Victoria?

Anyone who has undertaken to carry out construction work, or supply related goods and services, under a construction contract (ss 9, 14): subcontractors, head contractors, suppliers and consultants. The main exclusion is domestic building work for an owner-occupier: contracts between a builder and a building owner under the Domestic Building Contracts Act 1995 are outside the Act unless the owner is in the business of building residences (s 7(2)(b)).

When can I serve a payment claim in Victoria?

Reference dates are gone. You can serve one payment claim on and from the last day of each named month in which you carried out work (ss 14A(1), 14D), earlier if the contract allows (s 14A(3)), and on termination (s 14A(4)). The claim must state it is made under the Act (s 14(2)(e)).

December is split: work done between 1 and 21 December is claimable from 22 December, and work done between 22 and 31 December is claimable from 31 January (s 14A(2)).

The final cut-off is the day before the latest of the date your contract allows, 6 months after practical completion of all the work, and 6 months after supply of all related goods and services (s 14C). That is a shorter tail than the 12 months NSW allows.

How long do I have to serve a payment schedule in Victoria?

Ten business days after the payment claim is served, or the time your contract requires, whichever expires earlier (s 15(4)). Serve nothing in time and you are liable for the claimed amount on the due date, which the claimant can recover as a debt or take to adjudication, with a right to suspend work on notice (s 16).

When is a progress payment due under the Victorian Act?

On the date your contract provides, subject to a hard cap: any term requiring payment, or release of performance security, later than 20 business days after the claim is served has no effect (s 12(1B)). If the contract is silent, payment is due 10 business days after the earliest day the claim could have been served (s 12(1)).

When can I apply for adjudication in Victoria?

Within 10 business days after receiving a payment schedule that offers less than you claimed (s 18(3)(c)), or 10 business days after the due date if a scheduled amount is not paid (s 18(3)(d)), not the 20 most states allow. If no schedule arrived, notify your intention within 10 business days after the due date, allow 5 business days for a late schedule, then apply within 5 business days (ss 18(2), (2A), 18(3)(e)).

• Applications go to an authorised nominating authority chosen by the claimant (s 18(3)(b)), with a copy to the respondent within 3 business days (s 18(5)). ANAs are authorised by the Victorian Building Authority (s 42).
• A parallel adjudication regime exists for performance security release claims (s 18A).
• The adjudicator must determine within 10 business days, extendable by agreement up to 20 more (s 22(4)).

What catches people out under the VIC Act?

• The 2026 reforms apply to contracts entered into before 15 April 2026, not just new ones. Positions taken under the old Act need rechecking mid-project.
• The no-schedule adjudication path is the tightest in Australia: 10 business days to notify, a 5 business day wait, then only 5 business days to apply (s 18(2), (3)(e)). Diarise it the day payment falls due.
• The scheduled-but-unpaid window is 10 business days after the due date (s 18(3)(d)), half the 20 days NSW and QLD allow.
• The December split (s 14A(2)) means work done from 22 December cannot be claimed until 31 January.
• A "business day" excludes every day from 22 December to 10 January (s 4(1)), the longest eastern shutdown, so end-of-year deadlines drift well into the new year.
• The final claim tail is 6 months from practical completion (s 14C), not 12 months from last work.

Frequently asked questions

Primary sources

• Building and Construction Industry Security of Payment Act 2002 (Vic), legislation.vic.gov.au (Version 015, as at 24 June 2026)
• Victorian Building Authority: changes to the Security of Payment Act (commencement 15 April 2026)

General information, not legal advice. Deadlines depend on your contract and the current Act, and amendments move them. Verify against the Act and your executed contract, or get advice, before relying on any date here.