| Notice of intention to apply for adjudication – Section 18(2) Notice If a respondent fails to serve a payment schedule within 10 business days after a payment claim is taken to be served (or of the contract provides a shorter period, within that period), and fails to pay the whole or any part of the claimed amount, and the claimant wishes to make an adjudication application, the claimant must serve a Notice of intention to apply for adjudication – Section 18(2) Notice on the respondent.
The Section 18(2) Notice must be served on the respondent within 10 business days after the due date for payment, as provided for in the contract. If the contract does not contain a complying payment provision, the due date for payment is 10 business days after the earliest day on which a performance security claim may be served under section 14A.
The respondent has 5 business days after service of the Section 18(2) Notice to provide a payment schedule. Whether a payment schedule is served or not, a claimant may apply for adjudication within the 5 business days after the 5 business days provided for in the notice.
Our suggested wording for a Section 18(2) Notice is as follows:
Section 18(2) Notice
Payment Claim No: XXXXXXXXXXXXXX
Payment Claim Date: XXXXXXXXX
Claimant: XXXXXXXXXXXXX
Respondent: XXXXXXXXXX
This is a Notice under Section 18(2) of the Building and Construction Industry Security of Payment Act 2002.
1. The respondent is notified that it has failed to provide a payment schedule within the time allowed by the Act and has failed to make payment of the whole of the claimed amount.
2. The respondent is notified that the claimant intends to apply for adjudication of the payment claim referred to above.
3. The respondent is advised that they have an opportunity to provide a payment schedule to the claimant within five (5) business days after receiving this notice.
4. The respondent is advised that whether or not the respondent provides a payment schedule the claimant may make an adjudication application within five (5) business days after the end of the five (5) day period referred to above.
Yours faithfully
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