Guide
The Head Contractor Supporting Statement: What It Is and Why It Matters
Head contractors carry an extra obligation subcontractors don't: a supporting statement declaring subbies have been paid. Get it wrong and it's a criminal offence.
A head contractor's payment claim must be accompanied by a supporting statement declaring that all subcontractors have been paid all amounts due. Serving a false statement, or failing to attach one at all, is a criminal offence — with personal liability for directors of up to 200 penalty units — not just a technical defect.
If you're a head contractor serving a payment claim on a principal, the Act imposes an obligation that doesn't apply to subcontractors: every payment claim must be accompanied by a supporting statement. It's a short document, but the consequences of getting it wrong are serious.
What a supporting statement is
A supporting statement is a declaration, in the form approved by the Secretary, that all subcontractors have been paid all amounts that have become due and payable in relation to the construction work covered by the payment claim. It must be signed by the head contractor or an authorised representative.
Why it exists
The requirement was introduced to protect subcontractors further down the payment chain. Head contractors that receive payment from the principal are supposed to pass it down. The supporting statement forces the head contractor to turn their mind to whether that has actually happened before they can lawfully claim their own next progress payment.
The real risk: this is a criminal offence, not just a defect
Serving a supporting statement that is false or misleading in a material particular is a criminal offence under the Act, carrying significant penalties. Failing to attach a supporting statement at all is a separate, standalone offence in its own right — not merely a defect that affects the claim's validity. Both offences are classified as executive liability offences: a director or senior manager who knew of the offence, or was recklessly indifferent to it, and failed to take reasonable steps to prevent it, can be personally liable for a penalty of up to 200 penalty units. This sits alongside, and is more serious than, the more familiar civil consequences of a defective payment claim. If subcontractor payments are genuinely behind, a head contractor is in a difficult position: serve an accurate statement and expose the shortfall, or risk a false declaration.
Getting it right before you serve
The safest approach is to reconcile subcontractor payments before the claim goes out, not after a dispute arises. Where there's a genuine payment dispute with a subcontractor rather than simple non-payment, get advice on how that affects what can accurately be declared.
How this applies across NSW
Sydney metro head contractors
On multi-subcontractor projects across Sydney CBD, Macquarie Park and Liverpool, reconciling a long subcontractor ledger against a monthly claim cycle is where this obligation tends to get missed under time pressure. For our broader construction law services in these areas, see Archer Lawyers' Sydney CBD, Macquarie Park and Liverpool pages.
Regional NSW
Head contractors running smaller regional jobs around Tamworth and Dubbo often have fewer subcontractors to reconcile, but the same declaration and the same criminal exposure apply regardless of project size. For our broader construction law services in these areas, see Archer Lawyers' Tamworth and Dubbo pages.
Frequently asked questions
Do subcontractors need to provide a supporting statement?
No. The supporting statement requirement applies specifically to head contractors claiming against a principal, reflecting their position at the top of the subcontracting chain.
What happens if I forget to attach one?
A payment claim served without the required supporting statement is generally not a valid payment claim under the Act, and failing to attach one is itself a standalone criminal offence — not just a validity issue.
What if a subcontractor dispute means I can't honestly say everyone's been paid?
This is exactly when advice matters most. The statement needs to accurately reflect the true position, and how you word or qualify it in a genuine dispute scenario needs care.
Is this a common area for disputes?
Yes. It's increasingly used by principals and subcontractors as a point of scrutiny, and by regulators as an enforcement tool, so treating it as a formality is a real risk.
Can I fix a false statement after it's served?
Get advice immediately if you realise a statement was inaccurate. How you respond affects both the civil and potential criminal exposure.
If you're a head contractor unsure whether your supporting statement stacks up, get it checked before your next claim goes out. Contact our team for a free assessment.