1. Field Name and Definition

The Reference Period is a critical field in a NSW Cost Plus Payment Claim that specifies the exact timeframe during which the construction work or supply of related goods and services was performed. For example, "Work performed from 1 July 2025 to 31 July 2025."

This field is essential for:

• Establishing a clear temporal boundary for the claim.
• Defining the specific period to which all claimed costs, labour, and materials relate.
• Providing a chronological marker for tracking project progress.
• Forming the basis for calculating the reference date from which payment claim rights arise.

2. Legal Requirements

Statutory Framework

The concept of a reference period is directly linked to "reference dates" under the Building and Construction Industry Security of Payment Act 1999 NSW (the Act). Section 8 of the Act gives a person the right to a progress payment for construction work performed under a contract.

A payment claim can only be made on or from a "reference date," which is determined either by the contract's terms or, if the contract is silent, by the Act's default provisions (the last day of the month).

Case Law Clarifications

Consequences of an Incorrect Period

• The payment claim may be deemed invalid if the period doesn't align with a valid reference date.
• It can cause confusion about which costs relate to the claim.
• It could lead to disputes over overlapping or missing claim periods.
• An incorrect period may undermine your position in an adjudication.

3. Practical Guidance

Step-by-Step Instructions

1. Review Your Contract: First, examine your contract for any clauses that specify billing cycles or claim submission dates, as these determine your reference dates.
2. Identify the Correct Period: For standard monthly claims, use the full calendar month (e.g., "1 August 2025 to 31 August 2025"). Ensure the period does not overlap with previous claims or leave gaps.
3. Format Consistently: Always use a clear "Day Month Year" format and write the month's name in full to prevent confusion. State both the start and end dates clearly.
4. Cross-Check Records: Verify that work was actually performed during the stated period by checking site diaries, timesheets, and delivery notes.

Where to Find This Information

• Your construction contract (payment terms and progress claim clauses).
• Project schedules and progress reports.
• Your company's accounting or project management system.
• Previous payment claims to ensure continuity.

4. Common Mistakes and How to Avoid Them

Mistakes with the reference period can render your payment claim invalid and delay payment.

Mistake 1: Overlapping Claim Periods

Error: Including days that were covered in a previous payment claim.

Solution: Keep a clear log of all claim periods and ensure each new claim begins the day after the previous one ended.

Mistake 2: Misalignment with Reference Dates

Error: Stating a reference period that does not correspond to a valid reference date under the contract or the Act.

Solution: Always check the contract before preparing a claim to confirm the correct reference dates.

Mistake 3: Multiple Claims for the Same Period

Error: Submitting more than one payment claim for the same reference date.

Solution: Under section 13(5) of the Act, you cannot serve more than one payment claim per reference date. Keep accurate records of all submissions.

Mistake 4: Claiming for Periods of No Work

Error: Submitting a claim for a month where no work was performed.

Solution: Only claim for periods where construction work was actually carried out or related goods and services were supplied. No reference date arises for a month with zero work.

5. Risks of an Incorrect Reference Period

Failing to correctly define the reference period introduces significant legal, financial, and strategic risks.

6. Examples

7. Related Fields

The Reference Period is intrinsically linked to other key fields on the payment claim. Ensuring consistency across these fields is vital.

• Due Date for Payment: The reference period sets the reference date, which is the starting point for calculating the payment due date according to the contract.
• Description of Work: All work detailed in the description must have been performed within the specified reference period.
• Cost Breakdown: All claimed labour, materials, plant, and subcontractor costs must correspond to activities that occurred during the reference period.
• Claim Identification: Sequential claim numbers should align with consecutive, non-overlapping reference periods.

8. Frequently Asked Questions