Security Of Payment Claim
A Payment Claim made under the Security Of Payment Act is the foundation of any Adjudication Application.
This means it must be prepared correctly.
And, most importantly, proper service of the Security Of Payment Claim must be effected on the respondent.
Let’s take a closer look at what makes a solid Security Of Payment Claim.
Approved Date For Making The Security Of Payment Claim
Known as the “Reference Date”.
If you have a formal contract that expressly stipulates a date for making a claim each month than that is the date for making the claim.
If you don’t have a formal contract with a specified date for making a claim then it defaults to the last day of the named month.
You can claim for the preceding months work leading up to and including this date.
You cannot submit your claim early.
You cannot serve more than one claim per month.
Correct Legal Entities Of Both Parties In Full On The Security Of Payment Claim
What is a LEGAL ENTITY?
A lawful or legally standing association, corporation, partnership, proprietorship, trust, or individual. Has legal capacity to (1) enter into agreements or contracts, (2) assume obligations, (3) incur and pay debts, (4) sue and be sued in its own right, and (5) to be accountable for illegal activities.
Law Dictionary: http://thelawdictionary.org/legal-entity/#ixzz2kxDNli7c
It is imperative that you have the full and correct name of the entity that you formed the contract with clearly set out on the Security O Payment Claim.
You must also have the respondents address shown as their ordinary place of business, and if possible a Fax number. (more on this below under “Service”)
Proper Description Of The Work Being Claimed In The Security Of Payment Claim
To just say “bricklaying” is not good enough.
You must say what area of the job the claim relates to. You must describe in detail the part of the structure the claim relates to. You must describe in detail the works performed that the claim relates to.
Clearly State Amount Of Work Completed Included In This Security Of Payment Claim
To say “two days” is not good enough.
You must quantify the amount of works performed and the amount of materials supplied that the claim relates to.
Show How The Amount Of The Security Of Payment Claim Is Calculated
Just to say $1,000.00 + GST” is not good enough.
You must show either;
1) the total value of the whole of the contract work and the percentage completed that the claim relates to.
2) the unit cost of labour and the unit cost of materials and how many units performed / supplied that the claim relates to.
Effect Proper Service Of The Security Of Payment Claim
This is critical.
The best forms of service for you Security Of Payment Claim are, but not in any particular order;
a) Express Post
c) Licensed Process Server
Email is not recommended.
And critically the address for service must be the respondents ordinary place of business.
What Next !?!
The Respondent has 10 business days to either pay the Security Of Payment Claim in full or serve a Security Of Payment Act Payment Schedule on you.
To learn more about Security Of Payment Act Payment Schedules see https://recoup.com.au/security-of-payment-act-payment-schedule/