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Adjudication Applications

Are You Entitled To Apply For Adjudication Under The Security Of Payment Act ?

A claimant may apply for adjudication of a payment claim (an “adjudication application” ) if:

(a) the respondent provides a payment schedule under Division 1 but:

(i) the scheduled amount indicated in the payment schedule is less than the claimed amount indicated in the payment claim, or

(ii) the respondent fails to pay the whole or any part of the scheduled amount to the claimant by the due date for payment of the amount, or

(b) the respondent fails to provide a payment schedule to the claimant under Division 1 and fails to pay the whole or any part of the claimed amount by the due date for payment of the amount.

When Can you Apply For Adjudication Under The Security Of Payment Act ?

An adjudication application to which subsection (1) (b) applies cannot be made unless:

(a) the claimant has notified the respondent, within the period of 20 business days immediately following the due date for payment, of the claimant’s intention to apply for adjudication of the payment claim, and

(b) the respondent has been given an opportunity to provide a payment schedule to the claimant within 5 business days after receiving the claimant’s notice.

What Must An Application Made Under the security Of Payment Act Contain ?

An adjudication application:

(a) must be in writing, and

(b) must be made to an authorised nominating authority chosen by the claimant, and

(c) in the case of an application under subsection (1) (a) (i)-must be made within 10 business days after the claimant receives the payment schedule, and

(d) in the case of an application under subsection (1) (a) (ii)-must be made within 20 business days after the due date for payment, and

(e) in the case of an application under subsection (1) (b)-must be made within 10 business days after the end of the 5-day period referred to in subsection (2) (b), and

(f) must identify the payment claim and the payment schedule (if any) to which it relates, and

(g) must be accompanied by such application fee (if any) as may be determined by the authorised nominating authority, and

(h) may contain such submissions relevant to the application as the claimant chooses to include.

Call Glenn Bower on 1300 732 687 for further assistance.

1300 RECOUP Contractors Debt Recovery Contact Us For Security Of Payments Act Help

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.

Security Of Payment Claim

 

 

 

 

 

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 associationcorporationpartnershipproprietorship, 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

b) Courier

c) Licensed Process Server

d) Facsimile

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/

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