Very simply, the answer is “no”.

“Pay when paid” clauses in construction contracts have been illegal since 2004, however the actual practice of not paying subcontractors until payment has been received from a payer, has been rife in the industry for years.

If you have a subcontract the longest you should wait for payment is 25 business days, whether or not the person paying you has been paid themselves.

The only reason you should not receive payment by the due date is if you have received a valid payment schedule raising a dispute. The amount not in dispute still needs to be paid by the due date.

Please remember that paying by the due date, whether you have been paid or not, also extends to your own subcontractors. If you have not been paid, it is not a reason not to pay your own subcontractors. Want to learn more about how to get paid for the work you do, and pay others, under the Building Industry Fairness (Security of Payment) Act 2017? Sign up anytime 24 hours a day 7 days a week to our easy video-based online course Guide to Getting Paid Using BIF Security of Payment.

We work for subcontractors and trade contractors just like you. We can review your construction contracts or subcontracts so you know the risks before your sign. We also make recommendations on changes to the contracts to better protect your interests.

We can draft construction contracts for you and your subcontractor business or trade contractor business, reflecting the way you want and expect to do business and the terms you require in your contracts.

We can work with you on your construction disputes, your construction adjudication matters, and any other aspects of your construction litigation, so that you can get experienced and sound legal advice and representation.

We can help you get paid, using the power of legislation such as the Building Industry Fairness (Security of Payment) Act 2017, QBCCA and other legal instruments and strategies to help you get paid for the work you do.