Western Australia Act
Building and Construction Industry (Security of Payment) Act 2021 (WA)
It matters for builders, subcontractors, trades and principals handling payment claims.
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- Building and Construction Industry Security of Payment Act 2021 gives construction businesses a statutory pathway for progress payments.
- For small contractors, it can be the difference between a disputed invoice sitting unpaid for months and a structured claim, response and adjudication timetable.
Likely relevant if
- Builders, subcontractors and trades working on projects in Western Australia
- Suppliers of related goods or services under construction contracts
- Principals, developers and head contractors receiving payment claims
Check first
- Check whether the contract and work are covered before issuing or responding to a payment claim.
- Issue payment claims with the required information and within the correct timeframe.
- Respond to payment claims on time with a payment schedule if the amount is disputed.
What happens if you get it wrong
Penalties & enforcement
The main exposure is commercial and procedural: missed payment schedules, adjudication orders, judgment debt, cash-flow disruption and legal costs. Some regimes also restrict pay-when-paid clauses and other contracting practices.
Enforced by WA Building Commissioner, adjudicators and Western Australian courts
When this shows up in real life
Subcontractor has not been paid
Check whether the invoice can be framed as a valid payment claim, then track the response and adjudication deadlines carefully.
Head contractor disputes a claim
Prepare a payment schedule on time, identify disputed items clearly and keep evidence for variations, defects or set-offs.
Negotiating construction terms
Make sure the contract payment process works with the statutory regime. Clauses that ignore security of payment rights may not protect the business.
Plain-English glossary
- Payment claim
- A claim for a progress payment made under the security of payment regime or a construction contract.
- Payment schedule
- The respondent's formal response stating the amount proposed to be paid and reasons for withholding any amount.
- Adjudication
- A fast statutory process for deciding payment disputes, usually based on documents and strict deadlines.
Common questions
Is this only for builders?
No. Security of payment laws can apply to construction work and related goods or services. Coverage depends on the contract, work type and local exclusions.
Why do payment schedules matter?
A payment schedule is often the formal response to a payment claim. Missing the timeframe can limit the respondent's ability to dispute the amount later.