1. Field Name and Definition

Previous Payments Received refers to the documentation and recording of all payments you've received from the principal or head contractor against your previous payment claims throughout the project. This field captures the cumulative total of all monies paid to date, excluding the current claim period.

This field appears on every payment claim (except the first) to establish a clear payment trail and demonstrate the net amount owing. It's a critical component that shows the principal exactly what they've already paid, helping to avoid double payments and providing transparency in the payment process.

2. Legal Requirements

Statutory Framework

Under the Building and Construction Industry Security of Payment Act 1999 (NSW) ("the Act"), while there's no explicit requirement to state previous payments received, this information is essential for establishing the "amount claimed to be due" under section 13(2)(a).

The Act requires payment claims to identify the construction work or related goods and services to which the progress payment relates. By documenting previous payments received, you're demonstrating the progressive nature of the payment and establishing the context for your current claim.

Case Law Guidance

Consequences of Errors or Omissions

Incorrectly stating previous payments received can:

• Lead to payment schedules disputing the claimed amount.
• Trigger detailed payment disputes requiring adjudication.
• Potentially invalidate subsequent claims if systematic errors compound.
• Create grounds for the principal to argue the claim is misleading or deceptive.

3. Practical Guidance

Step-by-Step Instructions

1. Gather all previous payment claims submitted on the project.
2. Collect payment records including bank statements, remittance advices, and payment schedules.
3. Create a payment register documenting claim number, date, amount claimed, amount scheduled, amount received, and date received.
4. Calculate the cumulative total of all payments received to date.
5. Cross-reference your total against the principal's records where possible.

Where to Find This Information

• Your accounts receivable ledger
• Bank transaction histories
• Email correspondence with payment confirmations
• Principal's payment schedules
• Your project administration files or software

Clear Presentation

4. Common Mistakes and How to Avoid Them

Typical Errors

• Including disputed amounts: Only include payments actually received, not scheduled amounts.
• Double-counting variations: Ensure approved variations are tracked separately.
• GST confusion: Clearly separate GST components.
• Missing retention releases: Include any retention amounts released back to you.
• Currency of information: Using outdated figures that don't reflect recent payments.

Best Practices for Accuracy

• Maintain a live payment tracking spreadsheet updated after each payment.
• Reconcile your records with bank statements monthly.
• Request written confirmation of payments from the principal.
• Keep detailed records of any payment disputes or adjustments.

5. Risks of Not Including This Information

6. Examples

7. Related Fields

Consistency between these fields is crucial for a valid and understandable claim.

• Work Completed to Date: Previous payments are subtracted from this total to determine the current claim.
• Retention Held: This affects the net amount previously received if retention has been released.
• Variations: Must be tracked separately but included in totals once approved and paid.
• Current Claim Amount: Directly calculated using the value of previous payments.

8. Frequently Asked Questions