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Although there are multiple elements to a valid payment claim, each can be met with modest administrative discipline. There is no universal template that suits every project. What constitutes a “perfect” claim will depend on the contract, the scope of work and the commercial context. However, the statutory essentials are clear and manageable.
Performance security has long been one of the most contested aspects of construction projects.
Retentions and bank guarantees regularly remain in dispute well after completion. Security release can then be tied up in contractual arguments about defects, delay, or final accounts.
The reforms to Victoria’s security of payment regime change that, by giving claimants a clear statutory pathway to recover performance security.
Adjudication in Victoria now sits as a central feature of payment dispute resolution, rather than a limited or secondary option. This means paying careful attention to the preparation of payment schedules.
On 15 April 2026, Victoria introduced a new security of payment regime that changes not only how construction disputes are resolved, but also how payment claims are made in the first place.
