1. Field Name and Definition

The "Due date for payment" field on a NSW Payment Claim specifies the exact date by which the claimed amount must be paid to the claimant. This date is a critical component of a payment claim as it establishes the deadline for payment and triggers important legal consequences if payment is not made by this date.

This field appears on a Payment Claim because the Building and Construction Industry Security of Payment Act 1999 (NSW) ("the Act") creates a statutory framework for ensuring timely payment for construction work. The due date provides clarity for both parties about when payment obligations must be fulfilled.

2. Legal Requirements

Relevant Sections of the Act

Section 11 of the Building and Construction Industry Security of Payment Act 1999 (NSW) specifically addresses the due date for payment:

• For payments from a principal to a head contractor, the payment becomes due and payable 15 business days after a payment claim is made, or an earlier date if provided in the construction contract.
• For payments to a subcontractor, the payment becomes due and payable 20 business days after a payment claim is made, or an earlier date if provided in the construction contract.
• For exempt residential construction contracts, the due date is as set out in the contract terms.

Case Law

Consequences of Incorrect Completion

Incorrectly stating or omitting the due date for payment may:

1. Create confusion about when payment is legally required.
2. Potentially invalidate enforcement actions if undertaken before the correct due date.
3. Delay your ability to pursue remedies such as adjudication, debt recovery proceedings, or suspension of work.

3. Practical Guidance

Step-by-Step Instructions for Completing This Field

1. Review your construction contract: Check if your contract specifies payment terms (e.g., "14 days after submission of invoice").
2. Calculate the due date: If your contract is silent on payment terms, use the statutory timeframes (15 business days for head contractors, 20 for subcontractors) from the date the payment claim is served.
3. Use the correct date format: Express the due date in Day Month Year format (e.g., 15 August 2025).
4. Ensure the date is a business day: If the calculated date falls on a weekend or public holiday, the due date becomes the next business day.

Information Required to Complete This Field

• A copy of your construction contract.
• The date when the payment claim is served.
• A calendar to count business days (excluding weekends and public holidays).
• Knowledge of whether you are a head contractor or subcontractor.

4. Common Mistakes and How to Avoid Them

Typical Errors When Completing This Field

• Miscounting business days: Forgetting that business days exclude weekends and NSW public holidays.
• Confusing calendar days with business days: The Act specifies business days, not calendar days.
• Using incorrect default timeframes: Applying 15 business days when you are a subcontractor (should be 20), or vice versa.
• Ignoring contract provisions: Not checking if your contract specifies a different (and earlier) payment timeframe.
• Miscalculating from the wrong starting date: The counting period begins from when the payment claim is served, not when it is prepared.

How These Errors Impact Payment Claim Validity

While an incorrect due date may not automatically invalidate a payment claim, it can create significant complications, such as challenged enforcement actions or a loss of credibility in a dispute.

Best Practices to Ensure Accuracy

1. Double-check all calculations of business days.
2. Use a calendar to mark the date of service and count forward.
3. Have a colleague verify your calculation.
4. Use an automated platform that calculates due dates based on your project setup.

5. Risks of Not Including This Information

6. Examples

7. Related Fields

Reference Date: The reference date establishes when you are entitled to make a payment claim, which then starts the calculation for the due date.

Date of Payment Claim: The due date is calculated from the date when the payment claim is served, not the date written on the claim itself.

Payment Terms: This field on your project setup determines the contractual payment period that may override statutory timeframes if it results in an earlier date.

8. Frequently Asked Questions