Adjudication

adjudicationGET PAID QUICKER! – Your Right to Recover Progress Payments

Compulsory rapid adjudication, also known as ‘security of payment’, commenced in Queensland on 1 October 2004. It applies to construction contracts made after 30 September 2004. It is essential to plan ahead and avoid drastic consequences.

Over the past two years the Queensland Building Services Authority has worked hard to deliver this new system for improved payment outcomes for building and construction sub-contractors.  As an Authorised Nominating Authority, Adjudicate Today Pty Limited works with Mutual Mediations Pty Ltd to provide a comprehensive service that determines your rights to recover payments.

 

The Building and Construction Industry Payments Act 2004 (QLD) [“the Act”] underpins this process, enabling a party who is owed money under a construction contract to promptly obtain payment on an interim basis. An appropriately qualified and independent adjudicator assesses the merits of the claim.

The Act gives claimants the option of submitting a dispute over a payment claim to compulsory rapid adjudication even if the construction contract has no provision for progress payments and even if the contract is for a single supply for a lump sum price. The term ‘progress payment’ includes a claim for the whole contract price, a final payment.

The process should be completed in 10 business days, and if the respondent’s reasons for not paying are spurious, s/he is also liable for all the adjudication fees. The claim and adjudication is usually entirely in writing and it is so simple that a claimant does not require a lawyer. After adjudication the claimant takes the adjudication certificate to the appropriate court and registers it as a judgment debt.

Unlike litigation or arbitration, compulsory rapid adjudication cannot result in the claimant being liable to the respondent. The respondent cannot initiate adjudication or obtain a determination that the claimant must pay the respondent money. The maximum liability of the unsuccessful claimant is the amount of the adjudication fees. Even then, the fees are to be shared by the parties unless the adjudicator determines otherwise.

The Act broadly defines those persons who may make progress claims under the Act, including: contractors against clients; subcontractors against contractors; suppliers of building components against purchasers; architects, engineers, and others providing advice against clients, plant and equipment hirers against clients.

For more comprehensive and user-friendly information to assist you understand this revolutionary new legislation, please visit www.adjudicate.com.au

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