1. Field Name and Definition

The Work Description field is a critical component of a Payment Claim under the NSW Building and Construction Industry Security of Payment Act 1999 (the Act). It provides a detailed description of the construction work performed or related goods and services provided for which payment is being claimed.

This field appears on a Payment Claim because the Act requires claimants to clearly identify the construction work or related goods and services to which the payment relates. This ensures transparency and provides the respondent with sufficient information to understand what they are being asked to pay for, enabling them to properly assess the claim and respond with a Payment Schedule.

2. Legal Requirements

Statutory Framework

Section 13(2) of the Building and Construction Industry Security of Payment Act 1999 (NSW) states that a Payment Claim:

• (a) must identify the construction work (or related goods and services) to which the payment relates, and
• (b) must indicate the amount of the progress payment that the claimant claims to be due (the claimed amount), and
• (c) must state that it is made under this Act.

The Work Description field directly addresses the requirement in section 13(2)(a) to identify the construction work or related goods and services.

Case Law Clarifications

Consequences of Incorrect Completion

1. Invalid Claim: The Payment Claim may be deemed invalid, resulting in the loss of your statutory right to payment under that claim.
2. Limited Scope in Adjudication: Inadequate descriptions may limit the matters you can raise during the adjudication process.
3. Severance of Claim Items: If elements of the Work Description are insufficiently detailed, they may be severed from the claim while the rest remains valid.

3. Practical Guidance

Step-by-Step Instructions

1. Compile Work Information

• Gather all information about the work completed during the relevant period, including original contract works, approved variations, and related goods or services provided.

2. Create a Structured Description

• Organise your Work Description using a clear structure. List work by categories, include specific locations, reference contract line items or variation orders, and specify time periods.

3. Be Specific and Detailed

• For each item of work, include specific work elements completed, quantities (e.g., m², m, units), materials used, equipment deployed, and labour hours if relevant.

4. Cross-Reference Documentation

• Where appropriate, reference contract documents, specifications, approved variation orders, site instructions, and relevant drawings or plans.

Where to Find This Information

• Daily site diaries and progress reports
• Contract documents and schedules
• Approved variation orders
• Site instructions and meeting minutes
• Inspection and test records
• Material delivery dockets and timesheets
• Progress photographs

4. How to Present Information Clearly

Use Clear, Consistent Formatting

• Present information in a logical sequence.
• Use tables for structured data like quantities and rates.
• Include headings and subheadings for different work categories.
• Number items for easy reference in subsequent correspondence.

Be Precise and Objective

• Use industry-standard terminology consistent with the contract.
• Avoid ambiguous language (e.g., replace "general works" with specific tasks).
• Include measurable quantities where possible.
• Use factual rather than subjective descriptions.

Visual Support (if appropriate)

• Consider attaching progress photographs as supporting documentation.
• Include marked-up plans showing work locations.
• Use progress charts to illustrate completion percentages.

5. Common Mistakes and How to Avoid Them

Mistake 1: Vague or General Descriptions

Error: Using overly broad terms like "general building works" without specific details.

Solution: Be specific about the work performed, listing individual tasks, locations, and quantities.

Mistake 2: Inconsistency with Contract Terms

Error: Using terminology that differs from the contract or bill of quantities.

Solution: Use the same terminology and item numbers as in the contract documents to avoid confusion.

Mistake 3: Claiming for Work Not Yet Performed

Error: Including future work or work not completed by the reference date in the description.

Solution: Only describe work that has actually been completed during the relevant claim period.

Mistake 4: Describing Work Outside the Contract Scope

Error: Including work not covered by the contract or approved variations.

Solution: Ensure all described work relates to the contract or formally approved variations.

6. Risks of Not Including This Information

Legal & Financial Risks

Claim Invalidity: A Payment Claim without an adequate Work Description may be deemed invalid under section 13(2)(a) of the Act, leading to a loss of rights.

Payment Delays & Reduced Recovery: Inadequate descriptions provide grounds for respondents to withhold payment and may lead to work being undervalued or rejected in adjudication.

Limited Recourse: Inadequate descriptions may prevent you from raising certain matters in adjudication, as you can only pursue items that were properly described in the original claim.

7. Examples

8. Related Fields

Claimed Amount

The Work Description must align with and justify the amount being claimed. Each element of work described should correspond to a portion of the claimed amount.

Reference Date

The Work Description should only include work completed up to the reference date of the Payment Claim. Any work performed after this date must be claimed in a subsequent claim.

Contract Details

The Work Description should reference relevant contract documents, drawings, specifications, or variation orders to establish the contractual basis for the work.

Supporting Documentation

The Work Description should reference any attached supporting documentation such as photographs, delivery dockets, or test certificates that substantiate the claim.

9. Frequently Asked Questions