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ARTICLE · 25 JUNE 2023

A payment claim by another name

Piper Alderman
Piper Alderman
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Recent NSW judicial guidance directing attention to the substance, rather than the form, of payment claims and schedules.

AustraliaReal Estate and Construction
Robert Riddell
Robert Riddell
Tautvydas Anusaitis
Tautvydas Anusaitis
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If it smells like a letter of demand and looks like a letter of demand, then it could be a payment claim. Recent NSW judicial guidance directing attention to the substance, rather than the form, of payment claims and schedules.

Despite the criteria for payment claims and schedules under the Building and Construction Security of Payment Act (Act) appearing simple, parties continue to stumble into disputes as to their validity. Getting it wrong can easily inflict irreversible damage to one's prosecution of or defence to statutory debts and adjudication applications.

Richmond J in Piety Constructions Pty Ltd v Megacrane Holdings Pty Ltd [2023] NSWSC 309 (Megacrane) suggests that a holistic and practical approach should be used, but the devil remains in the detail.

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