Security Of Payments Act NSW Adjudication Applications
Below is an excerpt of the actual Security Of Payments Act NSW legisation section on adjudication applications. Skim through for an overview and then read on below.
BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 – SECT 17
Adjudication applications
17 Adjudication applications
(1) A claimant may apply for adjudication of a payment claim (an
“adjudication application” ) if:(a) the respondent provides a payment schedule under Division 1 but:
(i) the scheduled amount indicated in the payment schedule is less than the claimed amount indicated in the payment claim, or
(ii) the respondent fails to pay the whole or any part of the scheduled amount to the claimant by the due date for payment of the amount, or
(b) the respondent fails to provide a payment schedule to the claimant under Division 1 and fails to pay the whole or any part of the claimed amount by the due date for payment of the amount.
(2) An adjudication application to which subsection (1) (b) applies cannot be made unless:
(a) the claimant has notified the respondent, within the period of 20 business days immediately following the due date for payment, of the claimant’s intention to apply for adjudication of the payment claim, and
(b) the respondent has been given an opportunity to provide a payment schedule to the claimant within 5 business days after receiving the claimant’s notice.
(3) An adjudication application:
(a) must be in writing, and
(b) must be made to an authorised nominating authority chosen by the claimant, and
(c) in the case of an application under subsection (1) (a) (i)-must be made within 10 business days after the claimant receives the payment schedule, and
(d) in the case of an application under subsection (1) (a) (ii)-must be made within 20 business days after the due date for payment, and
(e) in the case of an application under subsection (1) (b)-must be made within 10 business days after the end of the 5-day period referred to in subsection (2) (b), and
(f) must identify the payment claim and the payment schedule (if any) to which it relates, and
(g) must be accompanied by such application fee (if any) as may be determined by the authorised nominating authority, and
(h) may contain such submissions relevant to the application as the claimant chooses to include.
(4) The amount of any such application fee must not exceed the amount (if any) determined by the Minister.
(5) A copy of an adjudication application must be served on the respondent concerned.
(6) It is the duty of the authorised nominating authority to which an adjudication application is made to refer the application to an adjudicator (being a person who is eligible to be an adjudicator as referred to in section 18) as soon as practicable.
Security Of Payments Act NSW Adjudication Application Guidelines
- A construction contract within the meaning of the Security Of Payments Act NSW must exist between the Claimant and the Respondent
- Construction work and or related goods and services must have been carried out / supplied in the period preceeding the reference date but not by more than 12 months.
- A payment claim must have been served on or before the available reference date.
- The payment claim must be in the form required by the Security Of Payments act NSW legislation
- A payment schedule must have been served by the respondent or a notice under section 17/2 of the Security Of Payments Act NSW must have been served.
- The Adjudication must be in the form required by the Security Of Payments Act NSW, lodged with the time allowed and a copy served on the respondent.
