ACT Security Of Payment Act

If you have carried out construction work and or supplied related goods or services on a construction project in the Australian Capital Territory this is the legislation you use for making a claim:

“Building and Construction Industry (Security of Payment) Act 2009”

The Security Of Payment Act ACT began in 2009.

The Australian Capital Territory Security Of Payment Act provides valuable debt recovery assistance for fast results at low cost.

The Object Of the Australian Capital Territory Security Of Payment Act.

The Purpose of the Australian Capital Territory Security Of Payment Act is to empower subcontractors, contractors, suppliers, consultants, etc etc to enable a fast, low cost debt recovery process. Prior to the Australian Capital Territory Security Of Payment Act commencing debtors could delay payment indefinitely but this is no longer possible under the strict timelines that the Australian Capital Territory Security Of Payment Act imposes.

The actual legislation itself reads :

Object of Act
(1) The object of this Act is to ensure that a person is entitled to receive,
and is able to recover, progress payments if the person—
(a) undertakes to carry out construction work under certain
construction contracts; or
(b) undertakes to supply related goods and services under certain
construction contracts.
(2) In particular, this Act—
(a) grants an entitlement to a  progress payment for construction
work, whether or not a construction contract provides for
progress payments; and
(b) establishes a recovery procedure for construction work
progress payments.”

Time Frames for the Australian Capital Territory Security Of Payment Act.

The process starts with the “Reference Date“. This is the date that both parties have agreed is the date each month for making a claim. There can only be one claim for each Reference Date per month. If there is no date agreed between the parties than the Reference date will default to the last day of the month.

Once a valid Payment Claim is served the respondent (debtor) has 14 days to serve a Payment Schedule on the Claimant.

If the Respondent fails to serve a Payment Schedule on the Claimant within the time allowed the Claimant must then serve a 2nd notice on the Respondent under section 19(2) of the Act prior to applying for Adjudication. Exactly when the the second notice can be sent is determined by certain factors that are critical – call us for further clarification on this.

Note well : Your claim under the Act will fail if the time frames imposed by the Act are not met.

Once the Claimant lodges an Adjudication Application the Respondent then if they have served a Payment Schedule has the right to lodge an Adjudication Response. If the Respondent has not served a Payment Schedule they cannot defend themselves at Adjudication.

The process ends with the “Adjudicator’s Determination“. The Adjudicators decision binds the crown – this means that the Adjudicators Determination can be entered onto the court record as a judgement. Enforcement of the judgement the ensues.

Entitlement To Payment Under the Australian Capital Territory Security Of Payment Act.

It is essential that you can provide sufficient evidence of the following items to persuade the Adjudicator of your entitlement to be paid under the requirements of the Act:

  • A Construction Contract within the meaning of the Act exists between the parties.
  • The work and or goods included in the Payment Claim have been completed / delivered and are defect free.
  • The work and or goods included in the Payment Claim have been charged at the agreed rates and or standard industry market rates.
  • A valid Payment Claim has been served.

Assistance To Start The Process of Making a Claim under the Australian Capital Territory Security Of Payment Act

Simply send us a copy of the unpaid invoices(s) by fax (02) 9475 4169 or email claims@recoup.com.au and we will respond within 24hrs.

If you would to speak to us now call 1300 RECOUP (1300 732 687)

If you would like to read the Australian Capital Territory Security Of Payment Act legislation click here.

Security Of Payments Act Help - Contact Recoup Contractor Debt Recovery