Supporting statement (NSW SOPA)
Supporting statement under NSW SOPA s 13(7): head contractor's declaration that all subbies have been paid. False statement: 200/1,000 penalty units plus jail.
Ask Chalkline about this →A supporting statement is a written declaration that a head contractor must serve with every payment claim made on the principal under the NSW Security of Payment Act. It declares that all subcontractors who have done work covered by the claim have been paid all amounts that have become due and payable. The statement is in the form approved by the NSW Secretary of the Department.
The legal basis is Building and Construction Industry Security of Payment Act 1999 (NSW) section 13(7) (the obligation to serve the statement) and section 13(8) (the offence of serving a knowingly false or misleading one).
Who must serve it. Only a head contractor (the contractor whose contract is with the principal). A subcontractor making a payment claim up the chain to the head contractor does not serve a supporting statement. The obligation runs in one direction only: head contractor to principal.
What “all subcontractors have been paid” means. The declaration covers amounts that have become due and payable as at the date of the supporting statement. Disputed amounts are excluded provided the dispute is genuine and recorded. Withheld retentions and unpaid amounts not yet due are excluded.
Penalties for a false or misleading supporting statement (s 13(8)):
- Corporation: maximum 1,000 penalty units, currently $110,000 in NSW.
- Individual: maximum 200 penalty units ($22,000) and/or 3 months imprisonment.
- Executive liability under s 34D: the offence committed by a corporation is an executive liability offence; directors and persons involved in management are personally exposed.
Practical consequences. A payment claim served without a supporting statement (where one is required) is invalid; the principal can refuse to deal with it. A claim served with a false supporting statement exposes the head contractor and its directors to prosecution by the regulator, regardless of whether the principal pays.
State scope. The supporting statement obligation is NSW-specific. The QLD and SA SOPA equivalents have different declaration mechanisms; check the relevant state Act before assuming this NSW form applies elsewhere.
Also known as: s 13(7) statement, head contractor declaration, subbie payment declaration.
Category: Contracts / payment / SOPA.
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Last updated: 2026-05-14. Verified: 2026-05-14.