Written by: Jesse McCrea, Litigation (Updated: 6th October 2026)
Greenhalgh Pickard’s Litigation team recently achieved a successful outcome for an electrical subcontractor in a Queensland security of payment adjudication concerning unpaid residential construction works.
The matter presented several challenges. Our client did not have a single formally executed written contract with the builder. The contractual terms and applicable rates therefore had to be established through correspondence, previous dealings between the parties, their conduct and exchanged unit-rate schedules.
Following the adjudication process, the adjudicator accepted our client’s valuation of the works and awarded the full amount of the progress claim, together with interest. The respondent was also required to bear 100% of the adjudication fees.
The result provides a useful example of how Queensland’s security of payment legislation can assist contractors and subcontractors seeking payment, including where the contractual arrangements have developed informally.
Can You Claim Progress Payments Without a Written Contract?
The Building Industry Fairness (Security of Payment) Act 2017 (Qld) recognises that a construction contract may be written, oral, or partly written and partly oral. A formally signed contract is therefore not necessarily required before rights under the security of payment regime can arise.
This was particularly important in our recent adjudication.
Our client had carried out electrical subcontracting works but there was no single executed agreement recording all of the contractual terms. Establishing the agreement required consideration of evidence including:
- email correspondence between the parties;
- their conduct and previous dealings on other projects;
- unit-rate schedules exchanged during the project; and
- records relating to the work actually carried out.
The adjudicator ultimately accepted the unit rates relied upon by our client when determining the value of the progress claim.
The case is also a useful reminder that businesses operating through informal arrangements should retain their emails, quotations, pricing schedules, site records and other contemporaneous documents. Those records can become critical if a payment dispute later arises.
How to Lodge a Valid Payment Claim
Queensland’s security of payment legislation provides a statutory process for contractors and subcontractors seeking progress payments.
A payment claim needs to clearly identify the relevant construction work or related goods and services and state the amount claimed.
Getting the initial payment claim right is important because the statutory process operates within strict timeframes. Questions about matters such as reference dates, service and the identification of the work claimed can potentially affect whether an adjudication application can proceed.
In our recent matter, the validity of the payment claim itself was accepted, allowing the adjudicator to consider the substantive dispute regarding payment for the electrical works.
Why the Payment Schedule Is So Important
Once a respondent receives a payment claim, its payment schedule assumes considerable importance.
Where payment is disputed, the payment schedule should identify the amount the respondent proposes to pay and the reasons why the balance is being withheld.
This became another significant issue in our recent adjudication.
The respondent sought during the adjudication to advance additional arguments concerning matters including contractual rates and materials said not to have been supplied. The adjudicator determined that some of these were new reasons for withholding payment which had not been included in the payment schedule.
Under the legislation, a respondent cannot generally use its adjudication response to introduce entirely new reasons for withholding payment that were absent from its payment schedule.
Those additional arguments were therefore unable to be considered when determining the adjudicated amount.
For builders and head contractors, this demonstrates the importance of carefully preparing a payment schedule when a claim is disputed. For subcontractors, it also demonstrates why the original payment schedule should be closely examined before preparing an adjudication application.
How the QBCC Adjudication Process Works
Adjudication provides a comparatively streamlined statutory process for resolving payment disputes without first undertaking conventional court proceedings.
An independent adjudicator considers the payment claim, payment schedule, adjudication application, response and other material permitted under the legislation.
In our client’s matter, the adjudicator considered the parties’ contractual dealings, the relevant unit rates, the progress of the works, supporting records and photographs.
Despite the absence of a formal executed contract, the adjudicator was satisfied that our client had established both the applicable contractual rates and the value of the work claimed.
The result was an award for the entire progress claim, together with interest, with the respondent responsible for 100% of the adjudication fees.
What This Result Means for Contractors and Subcontractors
Our recent result highlights several practical lessons for participants in the building and construction industry.
A missing formal contract does not necessarily mean that no enforceable construction agreement exists. Emails, pricing schedules, previous dealings and the parties’ conduct may all assist in establishing what was agreed.
The case also demonstrates the importance of keeping good records throughout a project and acting quickly when payment problems arise.
For respondents, a payment schedule should be treated as an important legal document rather than a preliminary objection that can be expanded upon later. Reasons omitted from the payment schedule may be unavailable if the dispute progresses to adjudication.
For claimants, properly preparing the payment claim and adjudication material can be critical to demonstrating the scope, value and contractual basis of the work performed.
Dealing With an Unpaid Adjudication Amount
Obtaining a favourable adjudication decision may not always be the final step.
If an adjudicated amount remains unpaid, further enforcement procedures may be available, including obtaining an adjudication certificate and registering that certificate as a judgment of a court with appropriate jurisdiction.
Depending upon the circumstances, conventional enforcement options can then become available.
Need Advice About an Unpaid Construction Claim?
Our recent adjudication result demonstrates that payment disputes can still be successfully pursued even where the parties’ contractual arrangements have not been neatly documented in a traditional signed contract.
Greenhalgh Pickard’s Litigation team assists contractors, subcontractors, builders and other construction industry participants with payment claims, payment schedules, adjudication applications and construction disputes.
Because strict statutory time limits can apply, obtaining advice early can be important.
For advice regarding a construction payment dispute or security of payment adjudication, contact Greenhalgh Pickard on (07) 5444 1022.
Sources
- section 75(2) of the Building Industry Fairness (Security of Payment) Act 2017 (Qld)
- section 76(1) of the Building Industry Fairness (Security of Payment) Act 2017 (Qld)
- section 82(4) of the Building Industry Fairness (Security of Payment) Act 2017 (Qld)
Disclaimer: This article provides general information only and does not constitute legal advice. It does not take into account your personal circumstances and should not be relied on as a substitute for professional legal advice. Litigation involves significant risks, costs and strict procedural requirements. For advice about your specific situation, please contact Greenhalgh Pickard on (07) 5444 1022.
Greenhalgh Pickard’s Litigation Team
