The Security of Payment Process

Let’s quickly revisit the Security of Payment scheme, to understand where Adjudication comes in.

(In the following process flow, you would be the Claimant, while the person owing you payment for construction work would be the Respondent).

Step One: Claimant prepares and sends a Payment Claim to the Respondent.

Step Two: Claimant waits 10 business days (or a shorter number of days as provided in your contract) for the Respondent’s move. After the lapse of those 10 (or less) days, one of the following may happen:

Step Three: Enforcement. In any of the cases above, you would have the following options:

Adjudication
Litigation
Suspension of Works
Lien

What is Adjudication?

Adjudication is a process under the SOP Act, created for the purpose of resolving payment disputes relating to unpaid construction work. 

Adjudication involves a determination by an independent Adjudicator, who must be nominated by the Authorised Nominating Authority (ANA) – an organisation authorised by the Victorian Building Authority to nominate Adjudicators under the SOP Act.

Adjudication does not involve the courts. It is a simple process where the nominated Adjudicator receives written submissions from both parties, conducts inspections or conferences when necessary, and decides on the amount to be awarded.

Why Adjudication

Adjudication is easily the most convenient, effective, economical method of enforcing payment claims. It’s exponentially cheaper than court litigation, and yields results in less than a month’s time, as opposed to a collection case in court which could take up to 6 months from filing to judgment.

Applying for Adjudication

When and how to apply for adjudication depends on your reason for electing it.

How We Can Help

Our specialist construction lawyers can help you choose the best option for your particular circumstance, and assist and represent you in adjudication and litigation, as well as prepare the relevant notices and documents should you opt for remedies other than adjudication and court action.

Should you need further information, please feel free to give us a call. First consult is free.