1. Field Name and Definition

Previous Claims Information refers to the detailed records of all payment claims previously submitted for a specific construction project. This field provides a chronological history of payment claims, typically including claim numbers, dates, amounts claimed, amounts paid, and outstanding balances.

This field appears on a Payment Claim to establish a clear record of the payment history between the parties and to provide context for the current claim. It demonstrates the progressive nature of construction payments and helps all parties track the financial status of the project to date.

2. Legal Requirements

Relevant Sections of the Act

While the Building and Construction Industry Security of Payment Act 1999 NSW does not explicitly mandate the inclusion of previous claims information, it establishes a framework where accurate record-keeping is essential:

• Section 13(2)(a) requires that a payment claim must "identify the construction work... to which the payment relates." Previous claims information helps establish the context of the current claim within the overall project.
• Section 13(2)(b) requires that a payment claim must "indicate the amount of the progress payment that the claimant claims to be due." Previous claims information helps calculate this amount accurately.

Relevant Case Law

3. Practical Guidance

Step-by-Step Instructions for Completing this Field

1. Gather Your Records: Collect all previous payment claims, payment schedules, and payment receipts for the project.
2. Create a Chronological Summary: List all previous claims in order, including claim number, date, amount claimed, amount paid, and outstanding balance.
3. Verify Accuracy: Cross-check your summary against bank statements and receipts to ensure all payments have been correctly recorded.
4. Format Clearly: Present the information in a table format for easy readability.
5. Calculate Totals: Include totals for amounts claimed to date, amounts paid to date, and total outstanding balance.

Where to Find this Information

This information can be sourced from your project financial records, previous payment claims submitted, payment schedules received from the respondent, bank statements, your contract administration system, or accounting software records.

4. Common Mistakes and How to Avoid Them

Typical Errors

• Inconsistent Claim Numbering: Using different numbering systems across claims, making it difficult to track the sequence.
• Omitting Partially Paid Claims: Failing to record claims that were only partially paid, which affects the overall outstanding balance.
• Incorrect Calculation of Outstanding Amounts: Mathematical errors in calculating outstanding balances.
• Failing to Update When Payments Are Received: Not updating the record when late payments are received after submitting a new claim.
• Incomplete History: Only including recent claims rather than the full project history.

Best Practices to Ensure Accuracy

• Maintain Real-Time Records: Update your records immediately when claims are made and payments received.
• Use Accounting Software: Utilise construction-specific accounting software that can automatically track claims and payments.
• Reconcile Regularly: Perform monthly reconciliations between your claim records and bank statements.
• Use Consistent Formatting: Use the same format and claim numbering system throughout the project.

5. Risks of Not Including This Information

Financial Risks

Without clear records, you might accidentally create duplicate claims for work already paid, or underclaim by forgetting amounts that remain unpaid from previous periods. This confusion can also lead to payment delays while the respondent seeks clarification.

Dispute Risks

The respondent may dispute your version of the payment history. Without clear, contemporaneous records, disagreements about outstanding amounts, variations, and retention are more likely to escalate.

Strategic Disadvantages in Adjudication

Incomplete or inaccurate records can give adjudicators the impression of poor administration. This undermines your credibility and makes it harder to prove your case and demonstrate your entitlement to the claimed amount.

6. Examples

7. Related Fields

The information in this section directly impacts other key fields in your payment claim:

• Current Claim Amount: The current claim amount should logically follow from the previous claims and reflect new work completed since the last claim.
• Total Contract Sum: Previous claims information helps track progress against the total contract sum.
• Retention Amounts: Essential for accurately tracking retention monies withheld and due for release across multiple claims.
• Variations: Helps in tracking claimed, approved, and paid variations over the project lifecycle.

8. Frequently Asked Questions