What is Security Of Payment Act adjudication?

An adjudication is a process carried out by an independent adjudicator to decide the amount, if any, that is due in respect of a progress payment claimed under the Act.

Only a claimant can start adjudication.

When can I apply for adjudication?

You may apply for adjudication in the following circumstances:

• you have not received a payment schedule or payment within 10 days of making a claim, and
• you have, within 20 days of the payment schedule or payment being due notified the respondent that you intend to apply for adjudication, and
• you have given the respondent 5 days to provide a payment schedule

OR

within 10 days of receiving a payment schedule with which you disagree

OR

if the respondent does not pay the full amount of the schedule.

Who selects the adjudicator?

Authorised Nominating Authorities (ANAs) select adjudicators.

Who selects the ANA?

The claimant chooses which ANA to submit an adjudication application to.

Claimants should note that fees amongst different ANAs may vary. Also, each ANA will have different panels of adjudicators. Prior to selecting an ANA, a claimant should inquire about ANA fees and the likely fees and expenses of the adjudicator. Claimants are encouraged to discuss with the ANA, the nature of the issues involved in their claim and the qualifications that might be required of the adjudicator.

How much does adjudication cost?

There are two components to adjudication cost. The adjudicator’s fees and expenses, and the ANA’s fees.

Adjudication is intended to be informal, inexpensive and quick. If issues are kept simple and the submissions of the parties are complete, clear and concise, adjudication fees can be kept to a minimum.

The Security of Payments Act requires that the claimant and the respondent share adjudicator’s fees equally, unless the adjudicator decides differently.