11Due date for payment

#### 11 Due date for payment 11 Due date for payment > > (1) Subject to this section and any other law, a progress payment to be made under a construction contract is payable in accordance with the applicable terms of the contract. > > > (1A) A progress payment to be made by a principal to a head contractor under a construction contract (other than an exempt residential construction contract) becomes due and payable on— > > > > > (a) the date occurring 15 business days after a payment claim is made under Part 3 in relation to the payment, except to the extent paragraph (b) applies, or > > > > > (b) an earlier date as provided in accordance with the terms of the contract. > > > (1B) A progress payment to be made to a subcontractor under a construction contract (other than an exempt residential construction contract) becomes due and payable on— > > > > > (a) the date occurring 20 business days after a payment claim is made under Part 3 in relation to the payment, except to the extent paragraph (b) applies, or > > > > > (b) an earlier date as provided in accordance with the terms of the contract. > > > (1C) A progress payment to be made under an exempt residential construction contract becomes due and payable— > > > > > (a) on the date on which the payment becomes due and payable in accordance with the terms of the contract, or > > > > > (b) if the contract makes no express provision with respect to the matter, on the date occurring 10 business days after a payment claim is made under Part 3 in relation to the payment. > > > (2) Interest is payable on the unpaid amount of a progress payment that has become due and payable at the rate— > > > > > (a) prescribed under section 101 of the [Civil Procedure Act 2005](/view/html/inforce/current/act-2005-028), or > > > > > (b) specified under the construction contract, > > > > whichever is the greater. > > > (3) If a progress payment becomes due and payable, the claimant is entitled to exercise a lien in respect of the unpaid amount over any unfixed plant or materials supplied by the claimant for use in connection with the carrying out of construction work for the respondent. > > > (4) Any lien or charge over the unfixed plant or materials existing before the date on which the progress payment becomes due and payable takes priority over a lien under subsection (3). > > > (5) Subsection (3) does not confer on the claimant any right against a third party who is the owner of the unfixed plant or materials. > > > (6) Except as otherwise provided by this section, the rules and principles of the common law and equity apply to the determination of priorities between a lien under subsection (3) over any unfixed plant and materials and any other interest in the plant and materials. > > > (7) Section 73(2) of the [Personal Property Securities Act 2009](http://www.legislation.gov.au/) of the Commonwealth is declared to apply to liens under subsection (3). > > > (8) A provision in a construction contract has no effect to the extent it allows for payment of a progress payment later than the relevant date it becomes due and payable under subsection (1A) or (1B). > > **s 11:** Am 2002 No 133, Sch 1 \[17\] \[18\]; 2008 No 62, Sch 2.4; 2010 No 57, Sch 1.1; 2013 No 93, Sch 1 \[3\] \[4\]; 2018 No 78, Sch 1\[5\]–\[7\]; 2020 No 30, Sch 1.6\[1\].