Construction Contracts Act 2002 — Payment Claims to Adjudication
This reference covers the payment timeline under the Construction Contracts Act 2002 (CCA). The CCA establishes default payment terms that apply unless the contract specifies otherwise. Many NZS 3910 Special Conditions modify these defaults — always check your contract first.
Print this page (Ctrl+P) for a desk reference. All clause references are to the CCA unless noted as NZS 3910.
The contractor (or any party) submits a payment claim under the contract. The CCA gives every party to a construction contract the right to submit a payment claim at any time. CCA s18-20
The claim must identify: the construction work or supply of related goods/services, the amount claimed, and the due date for payment.
The clock starts now. From this moment, the responding party has a fixed window to issue a payment schedule.
The responding party must issue a payment schedule within the time specified in the contract. If the contract is silent, the CCA default is 20 working days from receipt of the payment claim. CCA s22
The payment schedule must state:
1. The amount the respondent proposes to pay CCA s21(2)(a)
2. How that amount was calculated CCA s21(2)(b)
3. The reasons for any difference between the claimed amount and the proposed amount CCA s21(2)(c)
If no payment schedule is provided within the response period, the full amount claimed becomes a debt due and payable on the due date for payment. CCA s23
The claimant can then:
1. Recover the debt through adjudication CCA s24
2. Suspend work after giving 5 working days' notice CCA s24A
3. Pursue the debt through the courts as a summary judgement
The contract specifies when payment is due after the payment schedule is issued. If the contract is silent, the CCA default is 20 working days after the payment claim was served. CCA s22(2)
Late payment triggers additional rights:
1. The claimant can charge interest on the outstanding amount
2. The claimant can suspend work after 5 working days' written notice CCA s24A
3. The claimant can refer the matter to adjudication
If the parties cannot agree on the amount due, either party can refer the dispute to adjudication. The adjudicator's decision is binding on an interim basis. CCA s25-56
Key facts about adjudication:
1. Over 900 adjudications have been conducted since 2008, with the BDT handling 85% of all NZ adjudications
2. 56% of BDT adjudications are for claims under $50,000
3. Most disputes are resolved in less than 6 weeks
4. The process is designed to keep cash flowing — it does not resolve complex legal questions
5. Parties can still pursue litigation or arbitration after adjudication
| Event | CCA Default | Common NZS 3910 SC | Consequence of Missing |
|---|---|---|---|
| Payment schedule response | 20 working days | 10–15 working days | Full claimed amount becomes a debt |
| Payment due date | 20 working days from claim | As per contract | Right to suspend, adjudicate, or sue |
| Suspension notice | 5 working days' written notice | 5 working days | Claimant can stop work |
| Claim notice (NZS 3910) | "As soon as practicable" | 10 working days (absolute bar) | Claim is time-barred — dead regardless of merit |
| EOT notice (NZS 3910) | "As soon as practicable" | 5–10 working days | EOT claim may be rejected |
The system tracks every obligation, every deadline, every amended condition — before it becomes a dispute.
Book a Working SessionDisclaimer: This reference is for general information purposes only and does not constitute legal advice. The Construction Contracts Act 2002 and NZS 3910 contract conditions should be read in full and interpreted in the context of your specific contract. Provan provides contractual and commercial analysis — not legal advice. Consult a qualified construction lawyer for legal questions. All statistics are sourced from publicly available data and verified as of March 2026.