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What are my rights when a builder will not pay me in the Northern Territory?

In the Northern Territory the Construction Contracts (Security of Payments) Act 2004 makes pay when paid clauses void, caps payment at 30 working days after a claim, and lets a subcontractor apply for adjudication within 65 working days after a payment dispute arises. The NT has no statutory payment schedule. You can suspend work only after an adjudicated amount goes unpaid, giving 3 working days notice.

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What law protects subcontractors in the Northern Territory?

The Construction Contracts (Security of Payments) Act 2004 protects anyone who carries out construction work, supplies related goods and services, or provides professional services under a construction contract in the NT. It works differently from the eastern states: it implies fair payment terms into contracts that are silent, voids unfair clauses, and gives you fast adjudication of any payment dispute. The Construction Contracts Registrar oversees it.

The Construction Contracts (Security of Payments) Legislation Amendment Act 2019, in force from 3 February 2020, made the most recent substantive changes:

  • Working days, not calendar days, for every time period.
  • 65 working days to apply for adjudication, instead of 90 days.
  • 15 working days for the respondent to answer an adjudication.

Am I covered if I work for a builder on a house?

Yes. The Act applies to any construction contract, written or verbal, whatever its value (s 5 and s 9), and it has no owner occupier exclusion. A subcontractor working for a builder on a house is covered. Section 10 makes any attempt to contract out of the Act void. Only contracts worth more than $500 million can opt out of adjudication, and only if they have a compliant dispute process (s 10A).

How do I make a valid payment claim in the NT?

Your contract governs how you claim. Where it has no written term on claims, the Act implies one (s 19). The claim must be in writing, addressed to the builder, state your name, the date and the amount, itemise and describe the work in enough detail to assess it, and be signed. If the contract says nothing about progress claims, the Act implies a right to make them.

Practical points:

  • Itemise properly. The builder must be able to assess every line.
  • Serve it in a way you can prove, by email to the address in the contract.
  • There is no fixed claim deadline in the Act, but the 65 working day adjudication window starts once a dispute arises, so claim promptly.

What must the builder do, and by when?

There is no statutory payment schedule in the NT. Where your contract is silent, the Act implies that the builder must give written notice of any dispute within 10 working days of receiving your claim and pay any undisputed amount within 20 working days (s 20). Whatever your contract says, a payment term longer than 30 working days after the claim is read as 30 working days (s 13).

Two more rules:

  • Pay when paid and pay if paid clauses have no effect (s 12).
  • A payment dispute arises when the amount claimed is due and not paid in full, or the claim is rejected or wholly or partly disputed (s 8). Unreturned retention or security also counts once it is due.

The NT Government guidance page still shows the pre-2020 periods of 14 and 28 days. The Act itself, as amended, uses 10 and 20 working days.

What can I do if the builder still does not pay?

Apply for adjudication within 65 working days after the payment dispute arises (s 28). Use the adjudicator named in your contract or a registered prescribed appointer, which must appoint within 5 working days. The builder responds within 15 working days (s 29), and the adjudicator decides within 10 working days after that (s 33). The determination is enforceable as an order of the court (s 45).

Key points:

  • Serve the application on the builder and on the adjudicator or prescribed appointer (s 28(1)(c)).
  • Do not miss the 65 working days. A late application can be dismissed without the adjudicator deciding it on its merits.
  • Payment is due as and when the adjudicator determines, with interest (s 42).
  • Small claims: disputes under $30,000 can go to the Community Justice Centre for a fixed fee, with the same time limits.

You can also sue on the contract in the ordinary way. There is no special debt recovery route restricting the builder's defences, as there is in the eastern states.

Can I stop work until I am paid?

Only after adjudication. The Act's right to suspend applies when an adjudicated amount is not paid (s 44). Give written notice in the form the regulations require, at least 3 working days before the suspension date, and stay off the job until no later than 3 working days after payment. Before adjudication, your right to stop depends on your contract.

That is the biggest practical difference from the rest of the country. In the NT the pressure comes from adjudication, so lodge early rather than waiting.

What extra protections apply in the Northern Territory?

The NT has no statutory retention trust, project trust account or subcontractors charge, so the implied terms and adjudication are the main protections. Unreturned retention or security creates a payment dispute that can go to adjudication once it is due, which gives you a direct path to recover it.

Working days exclude weekends, public holidays in the place the act is done, and the Christmas period from 25 December to 7 January.

What should I do today if I have not been paid?

Work the steps in order and keep a dated record of each one. The 65 working day window starts when the dispute arises, not when you decide to act, so the date the builder rejects your claim or misses the due date is the one to diary.

  1. Serve a written, itemised, signed claim by email.
  2. Diary the dispute deadline (10 working days if your contract is silent) and the due date (no later than 30 working days).
  3. Once a payment dispute arises, diary 65 working days from that date.
  4. Apply for adjudication through your contract's adjudicator or a registered prescribed appointer, or the Community Justice Centre for claims under $30,000.
  5. If the adjudicated amount is not paid, give 3 working days notice and suspend under s 44.
  6. For large or disputed amounts, have an NT construction lawyer check the paperwork before you lodge.

The businesses that rarely end up here run it as a system rather than a fight: every claim is itemised and signed, and an AI agent tracks each claim's dates so the adjudication window is never missed.

Where is this in the legislation?

This is general information about the law as at 16 October 2026, not legal advice. Deadlines depend on your contract and the facts, so get advice from an NT construction lawyer before relying on it for a large or disputed claim.

Also asked

More questions owners ask.

Why is the NT different from the other states?

The NT follows the West Coast model, originally based on Western Australia's 2004 Act. It implies fair terms into contracts that are silent and gives fast adjudication of payment disputes, but it has no statutory payment schedule and no rule that a builder who stays silent owes the full amount. The adjudication window is measured from when a payment dispute arises.

Can I stop work in the NT if the builder does not pay my invoice?

Not under the Act until there is an adjudication. The statutory right to suspend under s 44 applies only when an amount determined by an adjudicator is not paid, after 3 working days written notice. Before that, your rights depend on your contract, so get advice before stopping work over an unpaid invoice.

Is there a cheaper option for small NT claims?

Yes. NT Government guidance says disputes under $30,000 can go to the Community Justice Centre for a fixed fee, with the same time limits as adjudication. For larger claims, use a registered prescribed appointer listed on the NT Government website.

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