| Notice of intention to apply for adjudication – Section 18A(2) Notice
If a respondent fails to serve a performance security schedule within 10 business days after a performance security claim is taken to be served (or of the contract provides a shorter period, within that period), and fails to release 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 18A(2) Notice on the respondent.
The Section 18A(2) Notice must be served on the respondent within 10 business days after the due date for release, as provided for in the contract. If the contract does not contain a complying payment provision, the due date for release is 10 business days after the earliest day on which a performance security claim may be served under section 17B(1).
The respondent has 5 business days after service of the Section 18A(2) Notice to provide a performance security schedule.
Whether a performance security 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 18A(2) Notice is as follows:
Section 18A(2) Notice
1. The respondent is notified that it has failed to provide a performance security schedule within the time allowed by the Act and has failed to release of the whole of the claimed performance security.
2. The respondent is notified that the claimant intends to apply for adjudication of the performance security claim referred to above.
3. The respondent is advised that they have an opportunity to provide a performance security 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 performance security 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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