BIF 101 — For Claimants
If you work in construction, you’ve probably heard of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) — or the “BIF Act.”
It’s designed to keep cash flowing through the industry by giving contractors, subcontractors and consultants a fast and powerful way to get paid for the work they do.
This article focuses on the Queensland regime under the BIF Act, but every Australian state and territory has its own Security of Payment legislation.
The core concepts are similar, but each jurisdiction has its own quirks — including different terminology, timeframes and procedural rules. If you’re operating across borders, it’s essential to understand which Act applies and how the details differ.
This article covers the essentials for claimants in Queensland — the people making payment claims under the Act.
What Is the Security of Payment System?
At its heart, the Security of Payment (SOP) regime is built on a simple principle: “pay now, argue later.”
It gives claimants a legal right to:
Make a payment claim for construction work or related goods and services; and
Require a timely response — a payment schedule — within strict timeframes.
If the respondent (the principal or head contractor) doesn’t respond or pay, you can quickly escalate through adjudication or court recovery, without waiting months for a traditional court process.
When Can You Make a Payment Claim?
You can make a payment claim each time a reference date arises.
A reference date is:
The date your contract specifies for making a claim (often monthly); or
If your contract is silent, the last day of each month by default under the BIF Act.
Even after a contract ends, a “final reference date” might still exist — but that depends on the contract and circumstances. It’s one of the most common traps in the system.
What Makes a Valid Payment Claim?
Your claim must satisfy the requirements in section 68 of the Act. It must:
Identify the construction work (or related goods and services) being claimed;
State the amount claimed; and
Request payment (explicitly or by clear implication).
There’s no prescribed format, but it’s good practice to include the words:
“This is a payment claim made under the Building Industry Fairness (Security of Payment) Act 2017 (Qld).”
Importantly, a document that includes the word “invoice” is taken to meet these requirements under section 68(1A) of the Act — even if it doesn’t expressly refer to the BIF Act. That said, being explicit avoids unnecessary argument, so it’s still best to label your claim clearly.
Make sure your claim:
Only covers one contract (not multiple projects);
Relates to work performed up to the reference date; and
Includes clear supporting material — schedules, quantities, variation summaries, and evidence of work done.
How to Serve a Payment Claim
Service is critical — and often misunderstood.
Under the Act, a payment claim must be served in accordance with the contract or, if the contract is silent, by one of the methods permitted by section 102 of the BIF Act.
⚠️ Electronic service can be risky:
Email is only valid if:
The contract expressly allows service by email; or
You can prove the recipient actually received it (for example, a confirmed reply or acknowledgment).
Similarly, sending payment claims via Dropbox links, shared drives, or online portals can be problematic.
If the contract doesn’t clearly allow service that way — or you can’t prove the respondent actually accessed the documents — service may be invalid. Always use a reliable, agreed method and keep evidence of delivery.
What Happens Next — The Payment Schedule
Once served, the respondent has:
15 business days to give you a payment schedule (unless the contract specifies a shorter period).
The schedule must:
State the amount the respondent proposes to pay; and
Explain why any part of your claim is being withheld.
If you receive a payment schedule for less than the amount claimed, you can apply for adjudication to recover the balance.
If you don’t receive any schedule at all, the claim amount becomes a statutory debt, recoverable in court.
Adjudication – The Fast Track to Payment
Adjudication is a fast, paper-based process before an independent adjudicator appointed through the QBCC.
You can apply for adjudication:
Within 30 business days of receiving the payment schedule; or
Within 30 business days of the due date for payment (if no schedule is received).
Your application must include:
The payment claim,
Any payment schedule (if one was received),
Supporting documents, and
A concise written submission.
Once your application is lodged, the respondent has a short, fixed adjudication response period (typically 10 business days) to put forward their case.
That period can be extended for complex claims — for example, where the amount claimed exceeds $750,000.
After the response period, the adjudicator considers both sides’ submissions and issues a written determination, usually within 10 to 15 business days.
However, adjudicators can — and often do — seek extensions of time to complete their decision, especially in larger or more complex matters.
While the regime is intended to be quick and cost-effective, the reality can be different.
We’ve seen adjudication fees in excess of $300,000, and decisions issued more than six months after the payment claim was first made. On substantial claims, adjudication is rarely the end of the matter — it often becomes the first round of a longer dispute that continues in court.
Common Claimant Mistakes
Even experienced contractors get tripped up by:
Missing or miscalculating reference dates.
Serving claims on the wrong entity (e.g. trading name vs company).
Sending claims by email, Dropbox, or online portals without proof of actual receipt.
Combining unrelated work or including items outside the contract scope.
Missing adjudication deadlines — which are strict and non-extendable.
Practical Tips for Claimants
Know your reference dates — and set reminders.
Check your contract’s service provisions before sending claims.
Keep detailed records and supporting evidence.
Use consistent claim templates and numbering.
Seek advice early if something looks off — a quick check can save you losing statutory rights.
A Complex but Powerful System
Each of these topics — reference dates, service, payment schedules, adjudication, enforcement — could easily be an article (or several) in its own right.
There’s a long line of court decisions interpreting these provisions, and the smallest factual difference can change the outcome.
The Security of Payment regime is powerful, but technical — and while it’s marketed as a fast, low-cost way to get paid, that’s not always the reality on complex or high-value claims.
It’s still one of the most effective tools available to enforce payment rights, but it needs to be used strategically.
At Level Field Lawyers, we act for claimants and respondents in Security of Payment disputes every day.
We know the traps, the timelines, and the arguments that work.
If you’ve done the work and haven’t been paid, get in touch — our construction law experts can help you use the BIF Act to your advantage.
