1. Field Name and Definition

The Claim Amount is the total monetary sum that a contractor or builder claims is due for payment in a progress payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW) ("the Act"). This amount represents the financial value of construction work completed and/or related goods and services supplied during the relevant claim period.

The Claim Amount is a fundamental component of a payment claim because it:

• Clearly communicates the exact payment being sought
• Forms the basis for payment obligations under the Act
• Establishes the amount that may become due if the respondent fails to provide a payment schedule
• Sets the maximum limit for what can be awarded in adjudication
• Provides a measurable figure against which payment schedules can respond

2. Legal Requirements

Relevant Sections of the Act

The Claim Amount is primarily addressed in Section 13(2)(b) of the Act, which states that a payment claim: "must indicate the amount of the progress payment that the claimant claims to be due (the claimed amount)".

Additionally, Section 13(3) specifies that the claimed amount may include:

• Any amount that the respondent is liable to pay under section 27(2A) (related to adjudication costs)
• Any amount held under the construction contract by the respondent that the claimant claims is due for release (such as retention monies)

Case Law Clarifications

Consequences of Incorrectly Completing or Omitting This Field

Failing to properly indicate the Claim Amount can have serious consequences:

• The payment claim may be deemed invalid and unenforceable
• The respondent may argue that they couldn't reasonably determine what was being claimed
• An adjudicator may not have jurisdiction to determine the payment dispute
• The claimant may lose their statutory right to payment for that claim period
• The claimant may need to resubmit the claim, potentially missing critical reference dates

3. Practical Guidance

Step-by-Step Instructions

1. Determine the base contract value to be claimed: Calculate the value of work completed since the last claim.
2. Add approved variations: Include only variations that have been approved or are permitted to be claimed under the contract.
3. Include any other claimable amounts: Add any delay costs, extension of time costs, released retention monies, or interest due.
4. Calculate GST: Apply the correct GST rate (typically 10%) to the subtotal and show it as a separate line item.
5. Determine final Claim Amount: Sum all components to reach the final amount and present it as a single, clear total figure.

Where to Find This Information

To complete this field correctly, you will need up-to-date records of work completed, the original contract, variation documentation, records of previous claims, and your accounting or project management software.

4. Common Mistakes and How to Avoid Them

Typical Errors

• Including unapproved variations: This can lead to disputes and rejection of claims.
• Double-claiming previously paid work: Failing to account for amounts already paid.
• Omitting GST or calculating it incorrectly: Incorrect tax calculations cause confusion and delays.
• Unclear or ambiguous claim amounts: Using phrases like "approximately" instead of precise figures.
• Mathematical errors: Simple calculation mistakes undermine the claim's credibility.

Best Practices

• Use accounting software or a system like contractsadministrator.com.au to calculate amounts accurately.
• Have a second person review claim amounts before submission.
• Maintain detailed records of all calculations and supporting documentation.
• Clearly differentiate between new claims, variations, and previously claimed amounts.

5. Risks of Not Including This Information

6. Examples

7. Frequently Asked Questions