Builder paying others but not you: change your priority

The pattern that tells you where you stand

You see the other sparky on site. He mentions he was paid last Thursday. The scaffolding company sent you a message, they got their cheque yesterday. Your invoice has been sitting for six weeks. The builder is still trading, still paying wages, still moving money. Just not to you.

A secured creditor will have priority over an unsecured creditor, but among unsecured creditors there is no formal legal priority outside insolvency. In practice, the builder is making a choice every week about who to pay. That choice is based on who applies the most pressure, who threatens to walk off site, or who the builder cannot afford to lose. If your invoices sit unpaid while others are cleared, you are not on that list yet.

Escalate past the site office to the decision maker

Site supervisors do not control payment. Emailing the project manager for the third time will not change your position. The person who decides which creditor gets paid this week is the company director, the owner, or the financial controller. Write directly to that person, by name, at their registered office or head office email address.

Attach three things: a clear statement of what is owed with invoice numbers and dates, the payment clause from your contract showing the due date, and a sentence stating that you are aware other contractors have been paid while your account remains overdue. That last sentence matters. It removes the excuse that there is no money and makes clear you understand this is a priority decision, not a cash flow problem.

Source: Official guidance

Use security of payment law while the time limit is open

Each state and territory has security of payment laws for construction work. They set timeframes for payments, explain how to make a progress claim and give steps to help resolve payment disputes. These laws were designed for exactly this situation: a contractor or subcontractor who completed construction work but has not been paid.

A payment claim is invalid if multiple payment claims are served in relation to a single reference date, and/or if it made more than 3 months after the relevant reference date. If your work was completed more than three months ago and you have not yet served a payment claim under the Act, your time to use this process may be closing. In response to the payment claim, the respondent may deliver a payment schedule within 10 business days of receiving the payment claim, failing which the full amount of the payment claim becomes due. Once you serve a valid payment claim, the builder must respond within the statutory window or the debt becomes immediately due and enforceable.

Set a deadline and name the next step clearly

Your letter to the director must finish with a clear, dated deadline and a statement of what happens if that deadline passes. For example: payment in full by 5:00 pm on Friday 7 November 2026, failing which you will serve a payment claim under the Security of Payment Act and commence adjudication. Or: payment by that date, failing which you will instruct solicitors to commence recovery proceedings.

The threat must be genuine, proportionate to the debt, and something you are prepared to follow through immediately if the deadline passes. A vague warning that you may take further action does not shift behaviour. A specific, dated consequence with a named next step does. Builders prioritise creditors who demonstrate they will act, not creditors who keep asking politely.

Act now while there is still money to recover

The risk is not that the builder cannot pay anyone. The risk is that by the time you escalate, the available cash has already been paid to the creditors who acted sooner. If the builder later becomes insolvent, outstanding employee wages and superannuation are paid first, then employee leave entitlements, then unsecured creditors. If there are insufficient funds to pay a category in full, the available funds are paid on a pro rata basis and the next category or categories will be paid nothing.

Do not wait for the next progress payment or hope the builder's cash position improves. Gather your invoices, contract and correspondence today. Check when your work was completed and whether you are still within the three-month window to serve a payment claim under your state's security of payment legislation. Write to the decision maker, escalate clearly, set a firm deadline, and act immediately if it passes. If the debt is significant or the builder's position is deteriorating, contact CRP today using the form below. We coordinate independent professionals who assess your position, explain your recovery options under the relevant security of payment laws, and help you move to the top of the payment list before the money runs out.