Why your Payment Claim may be invalid under the Security of Payments Act

A Payment Claim made under the Security of Payments Act is an intricate document that has specific requirements that need to be fulfilled and included in the Payment Claim so that it will pass through adjudication and win you your money with ease.

Below are a few issued that Claimants regularly stumble on in creating their own Payment Claim under the Security of Payments Act:

What State’s Security Of Payments Act Legislation Applies To Your Payment Claim?

As the Security of Payments Act is a state based legislation that may differ from state to state in Australia, the Security of Payments Act that you use in creating and serving your Payment Claim may be different from job to job.  The Security of Payments Act legislation that is used for your Payment Claim is extremely significant; if the incorrect legislation is used then your Payment Claim will be deemed invalid under the Security of Payments Act and cannot be pressed.

Have I got the right person/company in accordance with the Security Of Payments Act?

Often people who issue their own Payment Claim do not address it to the correct entity. This often occurs when the Claimant is unsure of who they have been contracting with. This may be the case if you believe you are working for a company, but your contract is with an individual and it is unclear as to whether that individual is acting as an agent, or has formed the contract with you as a separate entity. If the Payment Claim has been addressed to the wrong person, it will not pass through Adjudication.

What is a reference date for the purposes of the Security Of Payments Act?

The Security of Payments Act makes reference to a ‘Reference Date’, another imperative facet to your Payment Claim. Depending on how formal your contract is and what payment terms have been specified, you may or may not have a Reference Date stipulated that needs to be followed.  It is absolutely crucial that no more than one Payment Claim has been served per Reference Date; if this is the case then your Payment Claim will be invalid under the Security of Payments Act and cannot be pressed.

I sent them a Tax Invoice, does that count under the Security Of Payments Act?

Broadly speaking, a basic Tax Invoice is not a valid Payment Claim made under the Act and will not be regarded in the process set out under the Security of Payments Act.

In the seldom case that your Tax Invoice is a valid Payment Claim under the Security of Payments Act, and you have issued more than one Tax Invoice within the same Reference date, your Tax Invoice will be deemed invalid under the Security of Payments Act and will have no weight at Adjudication.

More often than not, people who have made Payment Claims under the Act without the aid of Recoup have failed to create and serve a valid Payment Claim under the Security of Payments Act… Contact Recoup today for a free review and consultation about how to proceed with your Payment Claim!

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