1. Field Name and Definition

The Previous Claims and Payments Summary is a critical reconciliation component of your NSW Cost Plus Payment Claim that provides a comprehensive overview of all historical payment activity on a construction project. This field presents a running financial ledger showing all payment claims previously submitted, payments received against these claims, and the calculated running balance of the contract sum to date.

This field appears on a Cost Plus Payment Claim because it establishes transparency in the ongoing financial relationship between the contractor and the client, creating a clear audit trail of all payment activities throughout the project lifecycle.

2. Legal Requirements

Under the Building and Construction Industry Security of Payment Act 1999 NSW (the Act), while not explicitly mandated as a standalone field, the Previous claims and payments summary supports several key legal requirements. Section 13(2)(a) of the Act requires that a payment claim must "identify the construction work to which the payment relates." A comprehensive payment history helps establish context for the current claim and demonstrates how it relates to the overall project scope.

Consequences of Incorrect Completion

Incorrectly presenting this field or omitting it entirely can lead to:

• Disputes over previously settled payments
• Confusion regarding the current outstanding balance
• Difficulty establishing payment patterns in the event of adjudication
• Challenges in demonstrating the progressive financial status of the project

3. Practical Guidance

Step-by-Step Instructions

1. Gather All Historical Payment Records: Collect all previous payment claims, payment receipts, and remittance advices.
2. Create a Chronological Register: List each payment claim sequentially, including its number, date, and claimed amount. Record payment dates and amounts received against each claim.
3. Calculate and Display Balances: For each transaction, show the outstanding balance.
4. Verify Accuracy: Cross-check your summary against bank statements and ensure all balances are carried forward correctly.

Where to Find This Information

The information needed to complete this field can typically be found in:

• Your accounting system or financial records
• Previous payment claim documents
• Bank statements and transaction records
• Client payment remittance advices

4. Information Required

To accurately complete this field, you will need:

• All previously issued payment claims (with numbers and amounts)
• Bank records showing all payments received
• Correspondence regarding disputed or adjusted payments
• Records of retention amounts withheld or released
• Documentation of any claimed or applied deposits

5. Common Mistakes and How to Avoid Them

Mistake 1: Incomplete History
Omitting earlier claims or payments creates gaps in the financial narrative.
Solution: Maintain a comprehensive, sequential register from the very first claim.

Mistake 2: Failure to Track Partial Payments
Not accurately recording when clients make partial payments.
Solution: Document each payment separately with its own date and amount.

Mistake 3: Overlooking Applied Deposits
Failing to properly account for deposits claimed or applied.
Solution: Include clear tracking of deposit activities in your summary.

6. Risks of Not Including This Information

7. Examples

8. Related Fields

The Previous claims and payments summary is closely related to and impacts several other fields in the Payment Claim:

• Total Claimed Amount: The current claim must align with the running balance in your payment history.
• Retention Monies: Retention calculations should be consistent with previous claims and match the total retention held to date.
• Variations: Approved variations included in previous claims must be accurately reflected in the summary.
• Statement under the Act: A clear payment history supports the integrity of your declaration under the Act.

9. Frequently Asked Questions