Filing a Payment Claim under CIPAA 2012 seems straightforward — but small mistakes can seriously weaken your case or even invalidate your claim entirely. Here are the 5 most common mistakes we see, and how to avoid them.
Mistake 1 — Not Having a Written Contract
CIPAA 2012 only applies to written construction contracts. Many sub-contractors work based on verbal agreements, purchase orders, or letters of award without a proper written contract.
If you do not have a written contract, you may still have options — but your claim will be significantly more difficult. Always insist on a written contract before starting any construction work, no matter how small.
Mistake 2 — Missing the Payment Claim Deadline
Under CIPAA 2012, your Payment Claim must be served within the timeframe specified in your contract — or within the statutory period if your contract is silent on this. Missing this deadline can result in your claim being rejected.
Many sub-contractors wait too long before taking action — hoping the main contractor will pay voluntarily. By the time they decide to file a CIPAA claim, the deadline may have passed.
Mistake 3 — Incomplete or Inaccurate Payment Claim Documents
Your Payment Claim must clearly state:
- The amount claimed
- The due date for payment
- The details of the work done or materials supplied
- Reference to the relevant contract
A Payment Claim that is vague, incomplete, or inconsistent with your contract documents gives the Respondent grounds to dispute or reject it. Every figure in your claim must be supported by evidence.
Mistake 4 — Not Responding to a Payment Response
If the Respondent serves a Payment Response disputing your claim, you must respond properly and within the timeframe allowed under CIPAA 2012. Many claimants ignore the Payment Response or do not know how to counter it effectively.
Failing to respond correctly can result in the Adjudicator accepting the Respondent’s version of events without hearing your side properly.
Mistake 5 — Trying to Handle the Claim Without Professional Help
CIPAA adjudication is a legal proceeding with strict rules, timelines, and procedural requirements. While it is designed to be more accessible than court proceedings, the process is still complex — especially when the Respondent engages a lawyer or experienced consultant.
Sub-contractors who represent themselves often find they are outmatched when the other party has professional representation. The cost of getting professional help is almost always recovered from the losing party if you win.
What Should You Do?
If you have an outstanding payment dispute, the best first step is to seek professional advice before serving your Payment Claim. Getting the claim right from the start dramatically increases your chances of success.
WE Project Management PLT offers a free initial consultation to assess your case. With over 800 CIPAA cases handled and a 90% success rate, we know what it takes to win.