• When the respondent provides a valid performance security schedule, and the claimant disagrees with the amount that the respondent intends to release
• When the respondent does not provide a valid performance security schedule and fails to release the full amount claimed by the due date in accordance with the contract and/or the Act
• When the respondent provides a valid performance security schedule, which the claimant does not dispute, but fails to release the scheduled amount by the due date in accordance with the contract and/or the Act
• Adjudication Application to be made with an Authorised Nominating Authority

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 performance security claim and the reasons, if any, that the respondent has given for releasing
an amount less than the amount claimed. The adjudicator must complete a written determination, including reasons, determining the adjudicated amount, due date for release 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 performance security claim on the party who may be liable to release the security. That party, the respondent, may
respond with a performance security schedule confirming or disputing the amount claimed to be released.

Pathways to Adjudication

The SOP Act provides 3 pathways to adjudication:

1. The respondent provides a valid performance security schedule, and the claimant disagrees with the amount that the respondent intends to release
2. The respondent does not provide a valid performance security schedule and fails to release the whole or any part of the claimed amount by the due date in accordance with the contract and/or the Act
3. The respondent provides a valid performance security schedule, which the claimant does not dispute, but fails to release the scheduled amount by the due date in accordance with the contract and/or the Act

When the respondent provides a valid performance security schedule, and the claimant disagrees with the amount that the respondent intends to release

f the claimant has received a valid performance security schedule (in accordance with the contract and/or the Act), and does not agree with the amount that the respondent intends to
release, an Adjudication Application must be lodged with the Authorised Nominating Authority (ANA) within 10 business days after receipt of the performance security schedule.

When the respondent does not provide a valid performance security schedule and fails to release the full amount claimed by the due date in accordance with the contract and/or the Act

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) of the Act.

The respondent has 5 business days after service of the Section 18A(2) Notice to provide a performance security schedule.

Whether the respondent does or does not provide a performance security 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 performance security schedule, which the claimant does not dispute, but fails to release the scheduled amount by the due date in accordance with the contract and/or the Act

If the claimant has received a valid performance security schedule (in accordance with the contract and/or the Act), and does not dispute the scheduled amount, but the respondent fails
to release the whole or any part of the scheduled amount by the due date, an Adjudication Application must be lodged with the ANA within 10 business days after the due date for release.

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.