Persons claiming outstanding payments for building works, such as builders or tradespersons, can lodge an adjudication application under certain circumstances. An adjudication application will call for an adjudication determination being made, requiring the respondent to arrange outstanding payments within a specified period of time. The meaning and effect of an adjudication application is difficult to grasp without a full understanding of the entire claim process. Our experienced Sydney Construction Lawyers have dealt with a variety of complex building disputes, assisting parties on both the initiating and receiving end of adjudication applications. Our Sydney Building Lawyers have extensive knowledge on the legal principles, notions and processes that surround building disputes and claims.
The process of making a claim for unpaid construction or building work costs can be summarised as follows:-
- The claimant must initiate the process by serving a Payment Claim. The Payment Claim should identify the amount of money being claimed as owing and the construction work to which those costs relate.
- The respondent must respond with a Payment Schedule. This should set out the amount the respondent proposes to pay and any dispute as to costs being claimed. Usually, the Payment Schedule must be provided to the claimant within 10 business days of receiving the Payment Claim.
- In circumstances where the respondent
- does not pay the amount;
- delivers a Payment Schedule which prescribes a lower amount than the Payment Claim; or
- fails to respond with a Payment Schedule,
the claimant will be entitled to make an adjudication application.
- The respondent may file an adjudication response within 5 business days of receiving an adjudication application or within 2 business days of being notified of an adjudicator being appointed. The response can have submissions but cannot have any reasons for withholding payment unless previously stated in the payment schedule.
- An adjudicator is appointed upon the receipt of an adjudication application to provide a determination. The law requires that the determination address the amount to be paid to the claimant, the deadline for which payment is required by the respondent, and the interest payable on the owed amount. The adjudicator is required to issue the determination within 10 business days of being appointed.
- The respondent, on receipt of the adjudicator’s determination, must arrange payment of the amount stipulated within the timeframe provided.
Note that the decisions of an adjudicator are not final, and can be appealed in Court. We offer comprehensive and practical legal advice based on a solid and thorough understanding of the intricacies and nuances of building law and construction law. Contact our office for further information.
Comments (0)
Add a Comment