You lodged an adjudication application because a head contractor or principal was sitting on money you’d earned. The adjudicator came back in your favour. You breathed out. Then the payment didn’t show up. If that’s where you are right now, the frustration is completely fair — chasing a debt that a government-appointed adjudicator has already confirmed is yours feels like it shouldn’t require another fight. But under Queensland’s security of payment laws, an adjudicator’s decision isn’t just a formality you can sit on. Missing the payment deadline is a criminal offence under the Building Industry Fairness (Security of Payment) Act 2017, not just a contractual breach to sort out between yourselves.
The 5-Day Rule, In Plain Terms
Once an adjudicator decides how much is owed, the respondent (the party ordered to pay) has 5 business days to pay, starting from the day they receive a copy of the adjudicator’s decision — unless the adjudicator has set a different date in the decision itself. There is no informal extension built into the law for cash flow problems, a dispute over quality, or a promise that a cheque is “in the mail.” The clock runs regardless of how the respondent feels about the outcome.
Failing to pay an adjudicated amount by the due date is a statutory offence, and QBCC treats it as a live compliance issue, not a private commercial dispute it stays out of. That’s a hard thing to hear if you’re the one who owes the money and genuinely doesn’t have it sitting in the account, but it is the reality of how the scheme is designed to protect subcontractors from exactly that excuse.
What Happens If You Don’t Pay — Or Don’t Get Paid
The consequences run in two directions, depending on which side of the ledger you’re on.
If you’re the one who owes the adjudicated amount and you miss the 5-day window, you’re exposed to prosecution, and QBCC can also treat non-payment as a breach of your licence conditions. A licensee who doesn’t pay a debt as and when it falls due can find that non-compliance escalating into fines, demerit points, or ultimately a look at whether you’re still a fit and proper person to hold a licence at all. None of that requires the other party to go to court first — QBCC’s own non-compliance and demerit points framework can be triggered off the back of the adjudicator’s decision alone.
If you’re the one owed the money and payment still doesn’t land, you’re not stuck. Queensland’s security of payment regime gives you real teeth:
- Lodge the adjudication certificate as a judgment debt in court, which lets you pursue normal debt recovery and enforcement action.
- Give the respondent a written notice of intention to suspend work — a powerful lever when the job is time-critical for them.
- Issue a payment withholding request to the party higher up the contractual chain, redirecting funds before they ever reach the non-paying respondent.
- Report the non-payment to QBCC, putting it on record against the respondent’s licence and demerit point history.
Adjudication vs Subcontractors’ Charges — You Only Get One
Here’s a trap that catches subcontractors before they even get to the 5-day rule: if you lodge a subcontractor’s charge over the debt, you lose access to the adjudication process for that same amount. You have to pick one pathway, not run both in parallel hoping one lands faster. Getting this choice wrong — often made under pressure, without proper advice, while cash flow is already tight — can burn weeks you don’t have and leave you back at square one on a debt that should have been resolved months ago.
“The businesses that get burnt aren’t the ones who don’t know the law exists — they’re the ones who assume the other side will just do the right thing once the adjudicator rules. Adjudication is only half the fight. Enforcement is the other half, and it’s where most people run out of steam.”
Karen Zhang — QBCC Express Founder
Why This Matters More Than a Single Job
An unpaid adjudicated amount doesn’t stay a one-off problem. For the non-paying party, it can become a documented non-compliance event, and documented non-compliance events are exactly what feed into QBCC’s demerit points system and its broader view of whether you’re managing your licence responsibly. Accumulate enough points across a rolling period and you’re looking at licence suspension — a very different order of consequence to a single overdue invoice. If you’re already juggling minimum financial requirements reporting, contact detail updates and other compliance deadlines, one more unpaid debt turning into a formal QBCC matter is the last thing your licence needs on the file.
If you’re sitting on a payment you can’t currently make, the worst move is silence. Getting proactive advice on restructuring the debt, negotiating a payment plan with the claimant, or understanding exactly what QBCC will and won’t escalate gives you a far better outcome than waiting for a demerit points letter to arrive. If your business is already under financial pressure and an adjudication decision has tipped it over the edge, a strategy session is the fastest way to get a clear-eyed view of your options before QBCC forms its own view of your compliance record.
Getting Ahead of It
Whether you’re the one chasing an adjudicated amount or the one trying to manage a payment you can’t yet make, the same principle applies: the 5-day rule doesn’t leave room for a wait-and-see approach. Subcontractors who understand the enforcement options move faster and recover more. Head contractors who understand the compliance exposure protect their licence instead of gambling it on a cash flow crunch resolving itself.
Security of payment disputes rarely stay simple once QBCC gets involved, and the gap between “technically compliant” and “genuinely protected” is often a single missed deadline. If a payment dispute is putting your licence at risk, book a strategy session with QBCC Express and get it sorted before it becomes a demerit points problem.
Frequently Asked Questions
How long do I have to pay an adjudicated amount in Queensland?
You must pay within 5 business days of receiving a copy of the adjudicator’s decision, unless the adjudicator specifies a different date in the decision. This deadline is set by the Building Industry Fairness (Security of Payment) Act 2017 and applies regardless of any ongoing dispute about the underlying work.
Is not paying an adjudicated amount actually a criminal offence?
Yes. Failing to pay an adjudicated amount by the due date is a statutory offence and can lead to prosecution, in addition to any QBCC disciplinary or licensing action taken separately over the same non-payment.
Can I lodge a subcontractor’s charge and go to adjudication for the same debt?
No. You need to choose one pathway. Lodging a subcontractor’s charge over an amount removes your ability to use adjudication to resolve that same payment dispute, so it’s worth getting advice before deciding which process suits your situation.
What can I do if the other party still doesn’t pay after adjudication?
You can lodge the adjudication certificate as a judgment debt in court, issue a notice of intention to suspend work, give a payment withholding request to a party higher in the contractual chain, or report the non-payment to QBCC so it’s recorded against the respondent’s compliance history.
Can unpaid adjudicated debts affect my QBCC licence?
Yes. Non-payment of a debt as and when it falls due can be treated as a breach of licence conditions, and can feed into QBCC’s demerit points system. Accumulating enough demerit points within a rolling period can lead to licence suspension, separate from any court enforcement action the claimant takes.
