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Building Payment Disputes The Governments of several States and Territories have implemented schemes to assist the flow of money between contracting parties who are in dispute about the rights to payment. LEADR is an authorised provider of adjudicators under the schemes in:
What is an Adjudication? An Adjudication is a process carried out by an independent Adjudicator to decide the amount, if any, that is payable by a Respondent in respect of a payment claim made under the Act. The process is quick and less costly than court proceedings and a decision is made within a matter of weeks. This process is administered by ANAs (Authorised Nominating Authorities), which are bodies appointed by the Minister of Commerce. LEADR is an Authorised Nominating Authority. Why Choose LEADR?
Who can make a claim under the Act? You can make a payment claim under the Act if you have undertaken construction work or provided related goods and services within the previous 12 month period. This includes:
A contract for construction work, or providing related goods and services can be verbal or written. Who is a Claimant? The Claimant is the party issuing a payment claim under the Act Who is a Respondent? The Respondent is the party who is served with a payment claim from a Claimant. How long does the process take? The process can take up to 14 business days to be completed. The steps are as follows: Once LEADR receives an Application the administrative compliance with the legislation is assessed. This includes checking that the application adheres to the time frames provided for in the legislation. Once the Application is accepted as compliant, LEADR will nominate an Adjudicator to make a decision in the matter. LEADR appoints the Adjudicators to each matter based on their skills and expertise and the issues in question. A particular Adjudicator cannot be requested. LEADR sends notification to the parties of the Adjudicator’s name and fees that will be charged for time spent on the matter. An Adjudicator will accept the matter within 4 business days of the date that the Adjudication Application was lodged with LEADR. The Adjudicator then has 10 business days to provide a decision (make a determination) for the matter. The Adjudicator’s determination will indicate the amount, if any that a Respondent is liable to pay a Claimant, the interest payable on an Adjudicated amount and the apportionment of the Adjudicator’s fees and ANA Application fee for the matter. What happens after the Adjudicator has made a determination? When an Adjudicator has completed the determination a tax invoice for the full amount of the fees is sent to both parties, as the legislation indicates that both parties are jointly and severally liable for the fees and expenses associated with the Adjudication. How these fees are paid is a matter for the parties to decide. However, full payment of the Adjudicator’s fees must be received in order for the determination to be released. The determination will indicate the apportionment of the Adjudicator’s fees and the ANA application fee. What happens if the Respondent does not pay the Adjudicated amount? If the Respondent does not pay the Adjudicated amount within 5 business days of the Respondent being served with the determination, the Claimant can contact the ANA to issue an Adjudication Certificate. The Claimant can file the Adjudication Certificate in the relevant court as a judgment. An affidavit of debt must accompany the Certificate outlining why the debt is outstanding. This means that the Adjudication Determination can be enforced without having to undergo costly, time consuming court hearings. What are the fees for an Adjudication? Application Fees
Adjudicator’s Fees
Claimants under the NSW legislation How do I start the Adjudication Process? An Adjudication process starts when a Claimant issues a payment claim. It is important that all the criteria in the legislation for this document are met and your payment claim is served correctly on the Respondent. What is a payment claim? A payment claim is a tax invoice that must:
Download a sample Payment Claim >> Ways that a claimant can serve a payment claim on a respondent include:
It is important that evidence of service is kept, such as fax transmission reports. When is payment due? If you have a construction contract that provides a date or a time period for payment, then you are entitled to be paid in accordance with this. If there is no contractual provision that specifies the due date for payment, then according to The Act you are entitled to be paid 10 business days after you serve the Respondent with the payment claim. Within the time period for payment, the Respondent must provide payment or a payment schedule. What is a payment schedule? A payment schedule is a response to a payment claim. It must:
Failure to provide a payment schedule within the proscribed time can mean that a Respondent is barred from an Adjudication Response. What happens if a payment schedule is received within 10 business days of issuing the payment claim? The Claimant has 10 business days from when they receive the payment schedule to bring forward an Adjudication Application. What happens if no payment or payment schedule is received within 10 business days of issuing the payment claim? Once the 10 business days have expired, the Claimant has 20 business days from the due date for payment within which to issue a 17(2) notice to the Respondent. What is a 17(2) Notice? A 17(2) Notice is notification by the Claimant to the Respondent of the intention to apply for Adjudication if the claimed amount remains unpaid. A 17(2) Notice gives a Respondent another 5 business days within which to provide payment or a payment schedule Download a sample 17(2) Notice >> What happens if no payment or payment schedule is received within 5 business days of issuing a 17(2) Notice? Once the 5 business days following the service of the 17(2) Notice on the Respondent have expired, the Claimant has 10 business days within which to bring forward an Adjudication Application to an Authorised Nominating Authority (ANA), such as LEADR. What should be in an Adjudication Application? An Adjudication Application must:
Download a NSW Application Form >> Download sample Claimant's Submissions >> For further information first time claimants should contact the LEADR office at (02) 9251 3366 or email your query to adjudication@leadr.com.au. LEADR staff will not provide legal advice.
Respondents under the NSW legislation What do I do if I receive a payment claim? If you receive a payment claim under the Act you must provide payment or a payment schedule within 10 business days. What is a payment schedule? A payment schedule is a response to a payment claim. It must:
Failure to provide a payment schedule within the proscribed time can mean that a Respondent is barred from an Adjudication Response. Ways that you can provide a payment schedule to a Claimant include:
It is important that evidence of service is kept, such as fax transmission reports. It is vital that the payment schedule is served on the Claimant within the correct time period. What do I do if I receive a 17(2) Notice? If you do not respond to a payment claim, the Claimant will issue you with a 17(2) Notice. You have 5 business days within which to provide payment or a payment schedule. What is a 17(2) notice? A 17(2) Notice is notification by the Claimant to the Respondent of the intention to apply for Adjudication if the claimed amount remains unpaid. A 17(2) Notice gives a Respondent another 5 business days within which to provide payment or a payment schedule What is an Adjudication Response? You are entitled to provide an Adjudication Response if you have provided a payment schedule within the required time frames either A) Within 10 business days after being served with a payment claim or B) Within 5 business days after being served with a 17(2) Notice An Adjudication Response is due 5 business days after you receive a copy of the Adjudication Application or 2 business days after an Adjudicator accepts the matter – whichever date is later. An Adjudication Response:
Download a sample Respondent's Submission >> If you are a first time Respondent and require further information please contact the LEADR Office on (02) 9251 3366 or via email adjudication@leadr.com.au. LEADR staff will not provide legal advice.
Claimants under the Queensland legislation How do I start the Adjudication Process? An Adjudication process starts when a Claimant issues a payment claim. It is important that all the criteria in the legislation for this document is met and your payment claim is served correctly on the Respondent. What is a payment claim? A payment claim is a tax invoice that must include the words “This is a payment claim under he Building and Construction Industry Payments Act 2004 (Qld)”, or words to the same effect. A payment claim is a tax invoice that must:
Download a sample Payment Claim >> Ways that a claimant can serve a payment claim on a respondent include:
It is important that evidence of service is kept, such as fax transmission reports. When is payment due? If you have a construction contract that provides a date or a time period for payment, then you are entitled to be paid in accordance with this. If there is no contractual provision that specifies due date for payment, then according to The Act you are entitled to be paid 10 business days after you serve the Respondent with the payment claim. Within the time period for payment, the Respondent must provide payment or a payment schedule. What is a payment schedule? A payment schedule is a response to a payment claim. It must:
Failure to provide a payment schedule within the proscribed time can mean that a Respondent is barred from an Adjudication Response. What happens if a payment schedule is received within 10 business days of issuing the payment claim? The Claimant has 10 business days from when they receive the payment schedule to bring forward an Adjudication Application. What happens if no payment or payment schedule is received within 10 business days of issuing the payment claim? Once the 10 business days have expired, the Claimant has 20 business days from the due date for payment within which to issue a 21(2) notice to the Respondent. What is a 21(2) Notice? A 21(2) Notice is notification by the Claimant to the Respondent of the intention to apply for Adjudication if the claimed amount remains unpaid. A 21(2) Notice gives a Respondent another 5 business days within which to provide payment or a payment schedule Download a sample 21(2) Notice >> What happens if no payment or payment schedule is received within 5 business days of issuing a 21(2) Notice? Once the 5 business days following the service of the 21(2) Notice on the Respondent have expired, the Claimant has 10 business days within which to bring forward an Adjudication Application to an Authorised Nominating Authority (ANA), such as LEADR. What should be in an Adjudication Application? An Adjudication Application should be in writing and:
Download a Queensland Application form >> Download a sample Claimant's Submission >> For further information first time claimants should contact the LEADR office at (02) 9251 3366 or email your query to adjudication@leadr.com.au. LEADR staff will not provide legal advice.
Respondents under the Queensland legislation What do I do if I receive a payment claim? If you receive a payment claim under the Act you must provide payment or a payment schedule within 10 business days. What is a payment schedule? A payment schedule is a response to a payment claim. It must:
Failure to provide a payment schedule within the proscribed time can mean that a Respondent is barred from an Adjudication Response. Ways you can provide a payment schedule to a Claimant include:
It is important that evidence of service is kept, such as fax transmission reports. It is vital that the payment schedule is served on the Claimant within the correct time period. What do I do if I receive a 21(2) Notice? If you do not respond to a payment claim, the Claimant will issue you with a 21(2) Notice. You have 5 business days within which to provide payment or a payment schedule. What is a 21(2) notice? A 21(2) Notice is notification by the Claimant to the Respondent of the intention to apply for Adjudication if the claimed amount remains unpaid. A 21(2) Notice gives a Respondent another 5 business days within which to provide payment or a payment schedule What is an Adjudication Response? You are entitled to provide an Adjudication Response if you have provided a payment schedule within the required time frames either A) Within 10 business days after being served with a payment claim or B) Within 5 business days after being served with a 21(2) Notice An Adjudication Response is due 5 business days after you receive a copy of the Adjudication Application or 2 business days after an Adjudicator accepts the matter – whichever date is later. An Adjudication Response:
Download sample Responent's Submissions >> If you are a first time Respondent and require further information please contact the LEADR Office on (02) 9251 3366 or via email adjudication@leadr.com.au. LEADR staff will not provide legal advice.
Queries? Let us help Contact us for more information or assistance. Telephone: 02 9251 3366
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