BIF 101 - For Respondents
The Building Industry Fairness (Security of Payment) Act 2017 (Qld) — or “BIF Act” — is designed to keep cash flowing through the construction industry. But for respondents (principals, head contractors and developers), it can also be a minefield of strict deadlines and unforgiving technical rules.
This article focuses on the Queensland regime, but every Australian jurisdiction has its own Security of Payment legislation. The principles are similar, but each state and territory has its own quirks — including different response periods, terminology and procedures.
Here’s what respondents need to know to stay compliant and protect their position when a payment claim arrives.
What Is the Security of Payment Regime?
The regime gives anyone who carries out construction work or supplies related goods or services the right to make a payment claim. Once a valid claim is served, the respondent must issue a payment schedule within strict timeframes.
If you fail to respond properly, the claimant can either:
Recover the full amount of the claim as a statutory debt in court; or
Apply for adjudication, potentially leading to an enforceable decision against you.
In other words, silence equals liability. The system is built to favour quick cashflow, and it punishes delay or procedural mistakes harshly.
The Payment Schedule — Your First Line of Defence
Once you receive a payment claim, the clock starts ticking. You have:
15 business days to issue a payment schedule (unless your contract specifies a shorter period).
A valid payment schedule must:
Identify the relevant payment claim;
State the amount you propose to pay (the “scheduled amount”); and
If it’s less than the claimed amount, set out all reasons for withholding payment.
Those reasons matter — because if the matter proceeds to adjudication, you’re generally limited to the reasons stated in your payment schedule. You can’t raise new arguments later.
A payment schedule doesn’t need to follow a prescribed form, but it must be clear and complete. Even a spreadsheet or email can work, but only if it meets all the statutory requirements.
Service — Getting It Right
Payment claims and payment schedules must be properly served.
Under the BIF Act, service must be carried out:
In accordance with the contract’s service provisions; or
By one of the methods allowed under section 102 of the Act (such as post, hand delivery or another method that ensures actual receipt).
Be cautious with email and file-sharing links such as Dropbox or online portals. They’re only valid if:
The contract expressly permits that form of service; or
You can prove the recipient actually received or accessed the document.
If you’re serving a payment schedule, make sure you can prove delivery — keep records, screenshots, or courier receipts. Service disputes are common and can decide whether a claim succeeds or fails.
What Happens After You Issue a Payment Schedule
Once your payment schedule is served, you must pay the scheduled amount by the due date for payment under the contract.
If you fail to pay that amount on time, or the claimant disagrees with your schedule, they may apply for adjudication.
If you issued a payment schedule, you’ll have the opportunity to lodge an adjudication response, but only on the basis of the reasons you included in your schedule.
Adjudication — Responding Under Pressure
If a claimant applies for adjudication, you’ll receive a notice of the application and be invited to respond.
You’ll typically have 10 business days to lodge an adjudication response — or longer if the adjudicator grants an extension (for example, in complex claims over $750,000).
Your response should:
Address each item claimed, referring back to your payment schedule;
Include all supporting documents, such as expert reports, correspondence and site records; and
Identify any jurisdictional issues (for example, invalid service, incorrect entity, or out-of-time claim).
After the response period, the adjudicator will review both sides’ submissions and issue a written determination.
Although the process is meant to be quick and inexpensive, that isn’t always the reality.
We’ve seen adjudications where fees have exceeded $300,000, and decisions delivered months after the payment claim was made. In large or complex disputes, adjudication is often only the start — not the end — of the process, with the parties heading to court soon after.
What If You Don’t Respond at All?
If you fail to issue a payment schedule within the required time, you lose the right to:
Dispute the claim at adjudication; and
Raise any new defences in court.
The claimant can recover the full amount as a debt due, and a court has very limited scope to intervene.
It’s one of the most severe consequences under the Act — and one that catches out even sophisticated parties.
Common Mistakes by Respondents
We regularly see respondents make the same errors:
Ignoring a payment claim or misunderstanding what qualifies as one (even an “invoice” can be a payment claim under section 68(1A)).
Serving a late or incomplete payment schedule.
Failing to include all reasons for withholding payment.
Assuming email or portal service is valid when it’s not.
Missing adjudication response deadlines or overlooking extensions.
These mistakes can hand the claimant an immediate right to judgment or adjudication — and leave you with few options to fight back.
Practical Tips for Respondents
Treat every invoice that references construction work as a potential payment claim.
Diary the deadlines as soon as a claim arrives — timeframes are strict and unforgiving.
Draft payment schedules carefully, setting out all reasons for withholding payment.
Keep comprehensive records of correspondence, site progress, and valuations.
Seek legal advice early — especially if you suspect the claim is invalid or excessive.
The Bigger Picture
The Security of Payment regime is designed to promote quick payment, but in reality it can be expensive, technical and protracted — particularly on major projects.
A fast statutory process can quickly turn into months of submissions, expert reports and adjudicator extensions.
Understanding the rules — and responding strategically — is the best way to protect your position and minimise risk.
At Level Field Lawyers, we act for both claimants and respondents in Security of Payment matters across Queensland and beyond.
We understand the practical realities of the system — and how to use it effectively when you’re on the receiving end of a claim.
If you’ve received a payment claim or need help preparing a payment schedule or adjudication response, get in touch — our construction law experts can help you navigate the process with confidence.
