Tutorial 44 · 10 min read · Works with ChatGPT, Claude, Gemini or Grok Bot, plus your job or accounting software for the figures
Payment claims made simple: a plain template for NZ tradies
Waiting on money for work you've done is one of the worst parts of the job. In New Zealand, the Construction Contracts Act gives you a tool for it: the payment claim.
If it's done properly and the client doesn't pay or respond in time with a payment schedule, the Act gives you ways to recover the amount. The catch is that the claim has to include the right things.
This page explains them in plain words, gives you a fill-in layout, and shows how AI can turn your job records into a tidy claim. Working in Australia? The rules are different, so see the links at the end.
What you'll need
- Your construction contract
- Your figures: work done to date, signed variations, previous claims paid
- The official Form 1 (PDF, building.govt.nz) (opens in a new tab)
- A free AI assistant: ChatGPT, Claude or Gemini
Payment claim vs invoice
An invoice asks for money.
A payment claim under the NZ Construction Contracts Act asks for money and starts a process set out in the Act. If the client wants to pay less, they must reply with a written payment schedule in time, or they can be liable for the amount claimed.
Not sure whether your usual paperwork counts? Read MBIE's official guidance: Other Construction Contracts Act requirements (opens in a new tab).
⚠️ ⚠️ NOT A SUBSTITUTE FOR LEGAL ADVICE OR THE ACT
- Plain-words summary of the Act and official MBIE guidance, last checked 2 Nov 2026.
- Your contract and the current law come first.
- Get legal advice before relying on a claim in a dispute or going to adjudication.
Official MBIE guidance: Construction Contracts Act 2002 (opens in a new tab) and Other Construction Contracts Act requirements (opens in a new tab) (building.govt.nz).
What an NZ payment claim must include
Under section 20 of the Construction Contracts Act 2002 (opens in a new tab), a payment claim must:
- be in writing
- identify the construction contract
- identify the construction work and the period it covers
- state the amount claimed and the due date for payment
- show how you calculated the amount
- state that it's made under the Construction Contracts Act 2002
Attach the official Form 1 (don't write your own)
MBIE says you must include a notice (Form 1) with all payment claims, for contracts entered into on or after 1 December 2015. It tells the client how to respond and what happens if they don't.
Download the official Form 1: Information that must accompany all payment claims (PDF) (opens in a new tab) from building.govt.nz each time, so you have the current version.
⚠️ Don't retype Form 1, and never have AI rewrite or summarise it in place of the official form.
What the client does next
If they're paying less than you claimed, they give you a written payment schedule saying what they'll pay, how they worked it out and why it's less.
The time they have is set by your contract, or by the Act if the contract doesn't say. Form 1 explains this and how working days are counted.
If they don't respond or don't pay, you may be able to recover the amount through the courts or adjudication. MBIE says to get advice from your lawyer before you start adjudication.
Other useful bits from MBIE: 'pay when paid' practice is banned, and if your contract doesn't make payment terms clear, the Act's default rules apply.
Fill-in layout for your claim
Use your own figures from your job or accounting software. This is just a layout for the must-haves above. It is not Form 1, which you attach separately.
Copy this prompt and fill in the [square brackets]:
PAYMENT CLAIM No. [number] This is a payment claim made under the Construction Contracts Act 2002. To (payer): [client or head contractor name, address] From (payee): [your business name, address, contact] Contract: [contract name/number, date, site address] Construction work covered: [plain description of the work] Period covered: [start date] to [end date] How the amount is calculated: Contract work completed to date: [amount] Approved variations to date (Nos. [x, y]): [amount] Less previous claims paid: [amount] Less retentions (if any, as per contract): [amount] Amount claimed this claim: [amount] [plus/including GST] Due date for payment: [date, as per contract] Attached: Form 1 (official form from building.govt.nz); [progress schedule / photos / variation forms]
Tip: AI can lay out your figures, but you check every number.
How to do it
- Check your contract for claim dates, due dates and retention terms.
- Pull your figures from your job or accounting software: work done to date, signed variations, previous claims.
- Draft the claim with AI (prompts below), using only your numbers.
- Check the must-haves in the list above.
- Attach the official Form 1, downloaded fresh from building.govt.nz.
- Send it the way the contract says and keep proof of when it was received.
- Diary the response date. If a payment schedule comes back lower, or nothing comes, get advice.
⚠️ ⚠️ NOT A SUBSTITUTE FOR LEGAL ADVICE, YOUR CONTRACT OR THE ACT
- AI lays out wording and figures you give it.
- It can be wrong about the law and can make maths errors.
- It must never write Form 1.
- Check every line before sending. For disputes or adjudication, get a lawyer.
Do the maths yourself or in your software. Check AI's adding.
Prompt 1: Lay out my payment claim (NZ)
Paste your own details. Remove anything you don't need to share.
Copy this prompt and fill in the [square brackets]:
Lay out a payment claim for a New Zealand construction contract using this structure: claim number; the statement "This is a payment claim made under the Construction Contracts Act 2002"; payer; payee; contract; construction work covered; period covered; calculation (work completed to date, approved variations, less previous claims, less retentions, amount claimed); due date; list of attachments including "Form 1 (official form)". Use only my figures and details below. Don't calculate anything I haven't given you; if a figure is missing write [CHECK]. Don't write any Form 1 wording. Details: [paste]
Prompt 2: Check my claim has everything
Copy this prompt and fill in the [square brackets]:
Check this payment claim against this list and tell me what's missing or unclear: in writing; identifies the contract; identifies the work and the period; states the amount and due date; shows how the amount was calculated; states it's made under the Construction Contracts Act 2002; Form 1 listed as attached. Don't give legal advice and don't change my figures. Claim: [paste]
Prompt 3: Friendly cover email
Copy this prompt and fill in the [square brackets]:
Write a short, friendly cover email to [first name] sending payment claim No. [x] for [job], covering work from [date] to [date]. Say the claim and Form 1 are attached, the due date is [date], and to call me on [your number] with any questions. No threats, no legal jargon. Keep it short.
Tip: See the progress claim prompt in AI prompts for builders.
Prompt 4: Progress schedule in plain words
Copy this prompt and fill in the [square brackets]:
Turn my notes into a short progress schedule to attach to my payment claim: each stage or item, what's been done this period, and any signed variations by number. Notes: [paste]. Don't add anything I didn't write.
Prompt 5: Explain a payment schedule I've received
Copy this prompt and fill in the [square brackets]:
Summarise this payment schedule in plain words: how much they say they'll pay, how they worked it out, and every reason they give for paying less. List the items we disagree on as questions for my lawyer or adviser. Don't tell me what my rights are. Schedule: [paste, with names removed]
⚠️ If the amounts are disputed, this is the point to get legal advice, not more AI.
Tools that help
⚠️ ⚠️ NOT A SUBSTITUTE FOR LEGAL ADVICE OR YOUR STATE'S SECURITY OF PAYMENT LAW
- Each state has its own Act, time limits and forms.
- Check your contract and your state regulator before you send a claim.
- Get legal advice for disputes or adjudication.
Want an AI setup that helps with claims, quotes and invoices? Take the quiz. Builders pick "Builder".
Working in Australia?
Each state has its own security of payment law, wording and time limits. NZ rules and Form 1 don't apply.
- NSW and Queensland: see our payment claim template for NSW and QLD
- NSW: Making a payment claim (NSW Government) (opens in a new tab)
- Queensland: Request payment (QBCC) (opens in a new tab)
- Victoria: Making a payment claim (Building and Plumbing Commission) (opens in a new tab)
- Other states and territories: check your state regulator.
FAQ
What's the difference between a payment claim and an invoice in NZ?
An invoice asks for payment. A payment claim under the Construction Contracts Act also starts a process: if the client wants to pay less, they must reply with a written payment schedule in time. If you're not sure whether your invoice works as a payment claim, check with your lawyer.
Do I have to attach Form 1?
Yes. MBIE says you must include Form 1 with any payment claims for contracts entered into on or after 1 December 2015. Download the official form from building.govt.nz. Don't retype it or have AI rewrite it.
How long does the client have to respond?
The time in your contract, or the time set by the Act if the contract is silent. Form 1 explains it, including how working days are counted.
Can AI write my payment claim?
It can lay out the claim from your figures and check it has the must-haves. You check the numbers, attach the official Form 1 and send it.
What if the client doesn't pay or disputes my claim?
You may be able to go to court or adjudication. MBIE says to get advice from your lawyer before you start adjudication.
Is it the same in Australia?
No. Each state has its own security of payment law. See our NSW and QLD payment claim guide or check your state regulator.
Checklist
- ☐ Contract read for claim and due dates
- ☐ All the must-haves in the claim
- ☐ Official Form 1 attached (downloaded, not retyped)
- ☐ Every figure checked by you
- ☐ Sent the way the contract says
- ☐ Proof of delivery kept
- ☐ Response date in the diary
Common mistakes to avoid
- Leaving out the "made under the Construction Contracts Act 2002" line
- No Form 1, or a retyped or AI-written one
- Not checking AI's maths
- Claiming outside the contract dates
- Using NZ wording or Form 1 in Australia