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The Importance of Deadlines for Issuing a Payment Schedule

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The Queensland Court of Appeal’s recent decision in Allencon Pty Ltd v Palmgrove Holdings Pty Ltd trading as Carruthers Contracting [2023] QCA 6 highlights the importance of being aware of the deadlines for issuing a payment schedule
Case Summary:
  • Allencon Pty Ltd (Allencon) engaged Palmgrove Holdings Pty Ltd T/A Carruthers Contracting (Carruthers) as a subcontractor.
  • Allencon issued a payment claim on 24 December 2021.
  • Carruthers issued a payment schedule within 15 business days (the period required under Queensland’s Security of Payment legislation).
  • However, the subcontract specified that a payment schedule was due within the lesser period of 21 days (and this period was not met by Carruthers).
For reference, the relevant payment schedule due dates under SOPA are:
StateDue date of Payment Schedule
Victoria10 business days
Queensland15 business days 
New South Wales10 business days 
South Australia15 business days
Tasmania10 business days (or 20 business days in relation to a residential claim)
Western AustraliaFor contracts entered into prior to 1 August 2022: 14 days For contracts entered into from 1 August 2022: 15 business days 
Outcome
  • The period under the subcontract was shorter than the period under SOPA.
  • SOPA requires that the payment schedule is due at the earlier date.
  • Therefore, Carruthers had failed to provide a payment schedule to Allencon within the 21 day period.
  • Carruthers was liable for the full amount in the payment claim.

Want further clarification?

It is essential that you have correctly understood your obligations regarding issuing payment schedules.

We frequently act for developers, builders and subcontractors in relation to the SOPA legislation. If you would like further clarification or advice, please contact us. 

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