The adjudication process under the Act is fast and straight forward. The adjudicator has 10 business days, after the date that any Adjudication Response may be served, to complete their written determination. The adjudicator may ask the claimant and respondent to consent to up to a further 20 business days.
The adjudicator must assess, in accordance with the contract and the Act, the claimant’s payment claim and the reasons, if any, that the respondent has given for paying an amount less than the amount claimed. The adjudicator must complete a written determination, including reasons, determining the adjudicated amount, due date for payment and interest payable. The adjudicator may also determine the portion of their fees that each party is liable for.
The process under the SOP Act is commenced by the claimant serving a payment claim on the party who may be liable to make payment. That party, the respondent, may respond with a payment schedule confirming or disputing the amount claimed.
Pathways to Adjudication
When the respondent provides a valid payment schedule, and the claimant disagrees with the amount that the respondent intends to pay
When the respondent does not provide a valid payment schedule and fails to pay the full amount claimed by the due date in accordance with the contract and/or the Act
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 payment claim is taken to have been served.
The respondent has 5 business days after service of the Section 18(2) Notice to provide a payment schedule.
Whether the respondent does or does not provide a payment schedule, an Adjudication Application must be made within 5 business days after the 5 business days provided for in the notice.
When the respondent provides a valid payment schedule, which the claimant does not dispute, but fails to pay the scheduled amount by the due date in accordance with the contract and/or the Act If the claimant has received a valid payment schedule (in accordance with the contract and/or the Act), and does not dispute the scheduled amount, but the respondent fails to pay the whole or any part of the scheduled amount by the due date for payment, an Adjudication Application must be lodged with the ANA within 10 business days after the due date for payment.
Adjudication Application to be made with an Authorised Nominating Authority If the construction contract to which the payment claim relates lists 3 or more Authorised Nominating Authorities (ANA), the application must be made to one of those authorities chosen by the claimant.
If the contract does not list 3 or more ANA’s, the claimant may choose any ANA.
The claimant must serve a complete copy of the Adjudication Application on the respondent within 3 business days of service on the ANA.
Download our Guide to Adjudication Application for details of what to include in your application. |
