What Must a Valid Payment Schedule Include?

Serving a payment schedule on time solves half the problem. The other half is making sure it actually qualifies as a payment schedule under the Act. A document that misses the requirements can, in some circumstances, be treated as though no schedule was served at all, which is a far worse outcome than a schedule that simply disputes the claim.

The three things a payment schedule must do

A payment schedule must identify the payment claim to which it relates, state the amount of the payment the respondent proposes to make (which can be nil), and if that amount is less than the claimed amount, state why, including the respondent's reasons for withholding payment.

Why the reasons section is where schedules actually fail

It's common for a respondent to correctly state a lower amount but fail to properly explain why. Vague statements like "amount disputed" or "under review" generally aren't sufficient. If the matter proceeds to adjudication, a respondent generally cannot raise a reason for withholding payment that wasn't included in the payment schedule, so an incomplete schedule can permanently limit your defence.

Detail matters more than length

A payment schedule doesn't need to be long, but every reason for withholding an amount needs to be specific enough that the claimant, and later an adjudicator, can understand exactly what's being disputed and why. Line-item detail is generally safer than a general statement covering the whole claim.

How this applies across NSW

Sydney metro

On larger projects around Parramatta and Penrith, payment schedules often need to respond to claims with dozens of line items, and the reasons section needs matching detail to hold up. For our broader construction law services in these areas, see Archer Lawyers' Parramatta and Penrith pages.

Regional NSW

On regional jobs around Coffs Harbour and Nowra, payment schedules are more often prepared without legal input under time pressure, which is exactly when the reasons section tends to fall short of what the Act requires. For our broader construction law services in these areas, see Archer Lawyers' Coffs Harbour and Nowra pages.

Frequently asked questions

Can a payment schedule simply say the amount is nil?

Yes, but it still needs to explain why, with the same level of detail required for any partial reduction.

What happens if my reasons are too vague?

You may not be able to rely on that reason later in adjudication, which can significantly narrow your ability to defend the claimed amount.

Does the payment schedule need to be in a particular format?

No prescribed form is required, but it must clearly cover the three statutory requirements: identify the claim, state the proposed amount, and give reasons for any shortfall.

Can I add more reasons later if I think of them?

Generally no. This is why getting the schedule right the first time, within the deadline, matters more than most people expect.

What if I genuinely need more time to assess the claim properly?

The statutory deadline doesn't extend for that. Get advice quickly so a properly reasoned schedule can still be served in time.

If a payment claim has just landed and you need a properly reasoned schedule prepared fast, contact our team for a free assessment.