Payment claims under the Construction Contracts Act 2002

By Randall Strickland · Updated 22 October 2026 · 3 min read

New Zealand’s Construction Contracts Act 2002 gives anyone doing construction work a right to progress payments and a fast way to enforce them. It works through two documents: your payment claim and the payer’s payment schedule. The Act is strict about what a payment claim contains, so it’s worth getting the format right once and reusing it.

What a payment claim must include

Under section 20 of the Act, a payment claim must:

1. be in writing;
2. contain enough detail to identify you (the payee) and the construction contract;
3. identify the construction work and the period it relates to;
4. show the amount claimed and the date it’s due;
5. show how the amount was calculated; and
6. state that it’s made under the Construction Contracts Act 2002.

Courts have thrown out claims that missed one of these, so treat them as a checklist, not a guide.

Form 1 goes with every claim

Every payment claim must also be accompanied by the prescribed information about the payment claim process: Form 1 of the Construction Contracts Regulations 2003. It explains to the payer what they need to do and what happens if they don’t. You can download it from building.govt.nz. Attach it every time, whether the payer is a big contractor or a homeowner.

The payer’s side: the payment schedule

If the payer doesn’t intend to pay the full amount, they must send you a payment schedule saying what they will pay and why, within the time in your contract or, if the contract doesn’t say, within 20 working days of receiving your claim. If they send no schedule and don’t pay the claimed amount by the due date, they become liable for the full amount. You can then recover it as a debt in court, and you can suspend work after giving notice. Disputes about the amount can go to adjudication.

Retentions

If your customer holds retention money from you on a commercial job, the Act requires them to hold it on trust for you, separate from their own money. Know what’s been held on each job, and when it’s due back.

Putting it on your tax invoice

A progress invoice can be your payment claim, as long as it has all six items and goes out with Form 1. Keep your GST number and the GST details on it as usual.

How JobFigure handles it

Set your country to New Zealand and JobFigure works in New Zealand dollars with GST on every tax invoice. On a new invoice, tick “Make this a payment claim” and check the work period (it starts the day after your last invoice). The invoice then says “PAYMENT CLAIM” under the title and adds the statement that it’s made under the Construction Contracts Act 2002, the claimed amount, the work period, the due date, and how the amount is calculated from the contract. The app links to Form 1 and reminds you to send it with every claim.

This is a plain-English summary, not legal advice. MBIE’s building.govt.nz has guidance on payment claims and the Construction Contracts Act; a construction lawyer can check anything that matters.

Keep reading