On most commercial builds, you pay as the work progresses rather than all at the end. That keeps the project funded and moving, and it’s governed by a specific law: the Construction Contracts Act 2002. Knowing how it works means no surprises when an invoice arrives, and no accidental disputes.
This post is a general guide, not legal advice.
Payment claims #
A payment claim is a request for payment for work done. To be valid under the Act, it must:
- be in writing
- identify the contract, the work and the period it covers
- state the amount claimed and the due date
- show how the amount was calculated
- say it is made under the Construction Contracts Act 2002
- come with the prescribed information sheet explaining how to respond and what happens if you don’t
Payment schedules: how to dispute a claim #
If you don’t agree with a claim, you respond with a payment schedule. It must be in writing, identify the claim and state the amount you’ll pay (the scheduled amount, which can be $0). If that’s less than the claim, you must explain how you worked it out and why.
Under Steelspan’s terms, a payment schedule must reach us within 5 working days of the claim, and payment is due 5 working days after the claim.
What happens if you don’t respond #
If you don’t provide a payment schedule in time and don’t pay, the claimed amount becomes due. The contractor can then:
- recover the full amount as a debt through the courts
- refer the matter to adjudication
- suspend work under the Act
In other words, ignoring a claim is the one response that guarantees you’ll owe all of it.
Why progress payments help you too #
- Work keeps moving, because subcontractors and suppliers are paid on time.
- You pay for what has actually been done, claim by claim.
- Problems surface early, at the next claim, rather than in one big argument at the end.
How Steelspan invoices #
Our payment terms are set out in the construction contract (a small works contract or NZS 3915) and in our published terms. Every invoice comes with a payment claim sheet as the Act requires. If anything on a claim looks wrong, tell us straight away, in a payment schedule, and we’ll sort it out. Prompt payment throughout a project shows it’s a genuine partnership, with both sides honouring their part: we get the job done, and the payments come in. As a family business, keeping on top of that is important to us.
Talk to Steelspan #
Questions about how payments work on your project? Ask before you sign. Call 0800 787 726 or email info@steelspan.co.nz.
