The builder’s excuse is not your deadline

Do not let their cash-flow problem become yours

If you are a subcontractor and the builder says, "We have not been paid by the developer", your invoice can still sit unpaid for weeks. That delay matters because wages, materials and hire costs do not wait. Business.gov.au notes that construction work is often paid by stages and that each state and territory has security of payment laws for construction work. ([business.gov.au](https://business.gov.au/planning/industry-information/construction-industry?utm_source=openai))

The practical problem is simple. The longer you accept the excuse, the more likely the debt gets folded into someone else’s cash squeeze. Your file should already separate what you supplied, what was approved, what is overdue and what was said on the phone. That gives you a clean position before the next conversation starts.

Check the contract for pay-when-paid wording

Start with the contract, subcontract or purchase order. Look for any wording that ties your payment to the developer paying the builder, or to money being available upstream. That wording may be in a payment clause, a special condition or a schedule hidden in the fine print. Do not rely on memory. Work from the signed document. ([business.gov.au](https://business.gov.au/people/contractors/laws-affecting-contracts?utm_source=openai))

Then mark the dates that matter: when you served your progress claim, when payment was due, and when the builder first refused or stalled. If the contract says one thing and the correspondence says another, keep both. The point is not to argue by instinct. It is to identify the exact clause that the builder is leaning on so you can answer it properly.

Source: Official guidance

Serve a payment claim under the right state law

Business.gov.au says contractors can issue a payment claim and, if the hirer does not respond, take the dispute to adjudication. It also points you to the relevant state or territory authority for the rules that apply where the work was done. Use that pathway promptly, because security of payment laws are built around strict timeframes. ([business.gov.au](https://business.gov.au/people/contractors/laws-affecting-contracts?utm_source=openai))

Do not wait for the builder’s upstream money to arrive before you act. A payment claim is your separate recovery step, and it creates pressure on the person who hired you. Keep the claim short, dated and consistent with your contract records. If the amount changes because of variations, explain that in the same file rather than in a separate mess of emails.

Put the position in writing and set a deadline

Reply in writing that your payment is not being treated as conditional on the developer paying the builder. Keep the tone firm and businesslike. Say you want payment by a fixed date, identify the invoice or claim number, and note that you will take the next step if the money is not received. Written replies matter because they stop the story changing later. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

This is also the point to ask for the reason for non-payment in plain terms. If they say there is a defect, ask for particulars. If they say the developer has not funded the job, ask whether they are disputing the debt or just delaying it. A clear deadline forces the issue out of the phone call and into a record you can use.

Move before the debt becomes a habit

If the deadline passes, move to the next step without drifting into another round of promises. That may mean adjudication, formal recovery action or a debt recovery review based on the file you have built. The important part is not to keep working while the old invoice is still open unless you are making a deliberate commercial decision to do so. ([business.gov.au](https://business.gov.au/people/contractors/laws-affecting-contracts?utm_source=openai))

If you want a practical next step today, pull together the contract, payment claim, invoice history and all written replies, then decide on the deadline you will give the builder. CRP can help coordinate independent qualified professionals for debt recovery support. This article is general information only and not legal advice, and it does not prove any legal fact.