How does construction adjudication work?
Adjudication is a fast, paper-based decision on an unpaid payment claim. A neutral adjudicator reads both sides and decides the amount due, usually in weeks, not months.
What adjudication is
Adjudication is a quick way to settle a payment dispute on a construction job. A neutral adjudicator reads the papers and decides how much is due.
Every Australian state and territory has its own security of payment law with its own adjudication rules and time limits. For example, Queensland uses the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act). An application is usually made within 30 business days of the payment schedule.
The steps
- A payment claim is made and not paid in full.
- The respondent gives a payment schedule, or does not.
- The claimant applies for adjudication within the time limit.
- The respondent files a response, with its reasons.
- The adjudicator decides and sets the amount and the date to pay.
How to prepare
The adjudicator works from documents, so the file is everything. Put the contract, the claim, the schedule and your proof in a clear order.
Match each item you claim to a record. A short, tidy submission is easier to follow than a long one. Do not rely on a site meeting or a phone call that nobody wrote down.
Related answers
Questions
Do I need a lawyer for adjudication?
No law requires one, but many parties use a lawyer or a claims consultant. A weak file is hard to repair once it is lodged.
Can I add new reasons in my response?
Often not. Reasons usually have to appear in the payment schedule first. Check the rules of the state where the work is done.
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