Protecting your payment rights
What is a supporting statement?
From 1 October 2020 new building industry laws will require some claimants (that is, head contractors for non-residential construction contracts) to submit a supporting statement with any request for payment (payment claim) to a principal or developer.
A supporting statement is a written statement that tells the principal or developer if all subcontractors of the head contractor have been paid what is owed to them and if there are any outstanding payments owed to subcontractors.
For each subcontractor who has not been paid, the supporting statement must state the name of the subcontractor who has not been paid, the amount still unpaid, details of the unpaid payment claim (e.g. the invoice of payment claim number), the date the subcontractor carried out the work and reasons the amount was not paid.
When are supporting statements required?
A supporting statement must be given with every payment claim given in relation to the construction contract. Supporting statements are not required for residential contracts with a homeowner.
Only the head contractor who is contracted directly by the owner or developer needs to give a supporting statement AND ONLY if they have engaged subcontractors under the construction contract.
Subcontractors and persons further down the contracting chain do not need to give a supporting statement.
When is an amount unpaid?
The amount owed to a subcontractor is either:
- the amount stated in a payment schedule, or
- if no payment schedule is given, the full amount of the subcontractor’s payment claim
- the supporting statement needs to include information about any subcontractors who have not been paid the full amount owing to them
- the unpaid amount is the difference between what is owed and what has been paid (if any).
Is there a supporting statement template I can use?
Yes, QBCC have developed two template options.
The law does not require use of a specific template – you may develop and use your own.
You can choose either of the below options based on your needs. Both options below will allow you to meet the new supporting statement requirements.
Option 1 – Separate standalone attachment to your payment claim
- you can use Supporting statement template – option 1 (PDF 114kb)
- here’s the Word version (DOC, 30kb) if you’d like to use this template
- once complete, send this form together with your regular payment claim / invoice
- best option if you need to state information about unpaid subcontractor payments.
Option 2 – Text included on your existing payment claim template
- you can use Supporting statement template – option 2 (PDF 136kb)
- here’s the Word version (DOC, 30kb) if you’d like to cut and paste the suggested wording into your regular payment claim / invoice
- this option should only be used if you have paid all your subcontractors in full as it does not allow for details of unpaid amounts to be listed.
What happens when a supporting statement is not provided?
Failure to provide a supporting statement with a payment claim as required may attract a penalty of up to 100 penalty units for head contractors.
In addition, head contractors who provide false or misleading information in a supporting statement may attract a penalty of up to 100 penalty units.
Not including a supporting statement with the payment claim DOES NOT make the payment claim or invoice invalid.
If a head contractor fails to provide a supporting statement with their payment claim, the respondent (e.g. principal) receiving the payment claim should still take all necessary steps to ensure they respond to the claim as required by the BIF Act (that is, providing a payment schedule or paying in full by the due date).