NSW: Supporting Statement by Head Contractor

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A head contractor must not serve a payment claim on the principal unless the claim is accompanied by a supporting statement that indicates that it relates to that payment claim.

A supporting statement is a statement that is in the form prescribed by the regulations and (without limitation) that includes a declaration to the effect that all subcontractors, if any, have been paid all amounts that have become due and payable in relation to the construction work concerned.

Knowingly providing false or misleading information in a supporting statement can lead to a large fine and/or three months imprisonment of an individual. However, the NSW Court of Appeal has recently held that service of a payment claim by a head contractor without a supporting statement does not invalidate the payment claim.

This requirement is to address the practice of falsely sworn statutory declarations about payments owed to subcontractors. It is policed by officers of the NSW Department of Finance, Services and Innovation.

The supporting statement is known as the Schedule 1 Form. In the form, the head contractor must declare that subcontractors they have engaged have been paid all payments due and payable in relation to the construction work concerned. Amounts in dispute are excluded however the supporting statement must identify the subcontractor.

Click to download the Schedule 1 Form. (Note: This Schedule Form 1 is as provided by the NSW Government. It is in Word format and when downloaded can be found in your "Downloads" or similar folder).

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