What if the Claimant disputes the Payment Schedule?

If the claimant disputes your payment schedule that claimant may apply for adjudication. In such cases, you have a maximum of 5 business days in which to deliver a submission to the adjudicator.

You cannot raise any defence, set off, cross-claim, or other reasons for not paying that you did not state in the payment schedule.

What if I don’t submit a payment schedule in time and don’t pay the claim?

The claimant may:

• go to court immediately (or up to 6 years later) to file a summons and obtain judgement for the total amount of the payment claim, or
• within 20 business days of the due date for payment, give notice of intention to make an adjudication application
• in either event, give notice of intention to suspend work
• exercise a lien over unfixed plant or material supplied to you by the claimant, and use the Contractors Debts Act 1997 to recover money directly from the Principal.

Can a claimant suspend work under the Security Of Payment Act?

Yes. A claimant can suspend work under the Act, following 2 business days warning, if the respondent fails to pay:

• the whole claimed amount by the due date for payment, where no payment schedule was served
• the scheduled amount by the due date for payment, or
• the adjudicated amount within 5 business days after an adjudication determination.

However, if a claimant is paid for the whole amount due, the claimant must resume work within 3 business days.

Nothwithstanding anything in the contract, the claimant is not liable for any loss or expense suffered by the respondent as a consequence of a suspension under the Act.

Further, if a respondent deducts any part of the work or the supply of goods or services from the claimant, the respondent is liable for any loss and expense suffered by the claimant.