1. Field Name and Definition

Certification/verification of work is a critical component of a NSW Cost Plus Payment Claim that provides formal confirmation that the work being claimed has been completed to the required standard. This verification typically comes in the form of a document or statement signed by an authorised person such as a site supervisor, project manager, or in some cases, an independent certifier.

In Cost Plus contracts, where payment is based on actual costs incurred plus a margin, proper verification is particularly important as it confirms not only that work was performed, but that it was necessary, appropriate, and completed satisfactorily before payment is processed.

2. Legal Requirements

Relevant Sections of the Building and Construction Industry Security of Payment Act 1999 NSW

While the Security of Payment Act does not explicitly require certification/verification as a mandatory element, it is implicitly supported by Section 13(2)(a) which states that a payment claim:

The certification/verification of work helps satisfy this requirement by providing clear, formal evidence that the claimed work was actually performed.

Case Law Clarifications

Several NSW court decisions have addressed aspects of work verification:

Consequences of Incorrectly Completing or Omitting This Field

The consequences of inadequate verification can include:

• The respondent may issue a payment schedule with a lower amount or zero payment, citing lack of verification as justification.
• In adjudication proceedings, inadequate verification may weaken your position and reduce your credibility.
• For significant projects, inadequate verification may expose you to claims that work was not performed to specification.
• In extreme cases, a pattern of inadequate verification could potentially be construed as misleading conduct.

3. Practical Guidance

Step-by-Step Instructions for Correct Verification

1. Identify the appropriate authority: Determine who is authorised to certify the work according to your contract (e.g., site manager, project manager, client representative, or independent certifier).
2. Document the work completed: Create a comprehensive record of all work done during the claim period, including dates, descriptions, materials, labour, and equipment.
3. Gather supporting evidence: Collect relevant documentation such as daily site diaries, progress photographs (dated and labelled), material delivery dockets, and verified timesheets.
4. Prepare the verification statement: Create a formal statement that references the project and claim number, lists the work being certified, and confirms the work meets required quality standards.
5. Obtain proper signatures: Ensure the verification is signed by the appropriate authority as specified in your contract, including their name, position, and the date.
6. Attach to payment claim: Include the signed certification as a clearly marked attachment to your payment claim.

Where to Find This Information

• The construction contract: Particularly clauses regarding who can certify work and any specific forms required.
• Project specifications: For required quality standards.
• Site diaries and progress reports: For daily records of work performed.
• Project management software: For digital records, photos, and reports.
• Quality assurance documentation: Including Inspection and Test Plans (ITPs).

4. Information Required

To complete this field properly, you will need:

• Detailed records of all work completed during the claim period.
• Knowledge of who is contractually authorised to certify the work.
• A clear understanding of the quality standards applicable to each task.
• Any specific certification forms or formats required by the contract.
• Clear documentation of any variations or additional works that have been performed.

How to Present This Information Clearly

• Use a standardised verification format consistently throughout the project.
• Clearly label the document as "Certification/Verification of Work".
• Reference specific sections of work with clear descriptions.
• Include a statement that explicitly confirms the work has been completed to the required standard.
• Ensure all signatures are accompanied by printed names and position titles.
• Date the certification clearly in Day Month Year format (e.g., 15 August 2025).

5. Common Mistakes and How to Avoid Them

Typical Errors Made During Verification

• Vague descriptions: Providing general statements like "work completed" without specific details. Solution: Be precise and comprehensive in describing each completed task.
• Incorrect authorisation: Having the wrong person sign the verification. Solution: Always confirm who is authorised to certify work according to the contract.
• Missing documentation: Failing to attach crucial supporting evidence like photos or site diaries. Solution: Create a checklist of required documentation for each claim.
• Retrospective certification: Obtaining certification after submitting the claim. Solution: Always secure verification before finalising and issuing the payment claim.
• Unverified variations: Failing to get specific verification for variations or additional works. Solution: Ensure variations are documented and certified separately.

6. Risks of Inadequate Verification

Failing to provide proper certification of work exposes you to significant risks that can jeopardise your payment and project relationships.

7. Examples

8. Related Fields

Certification of work is directly linked to several other critical fields within the payment claim. Ensuring consistency across these fields is vital for a strong and defensible claim.

• Labour Costs: The certification should verify that the labour hours claimed were actually worked on the project and were necessary for the completion of the verified work.
• Material Costs: Verification should confirm that materials claimed were actually incorporated into the project and were required for the specified work.
• Description of Construction Work: The certification must directly correspond to and validate the description of work performed listed elsewhere in the payment claim.
• Variations: Any variations included in the claim should be specifically mentioned and confirmed in the certification document.

9. Frequently Asked Questions