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Responding to a payment claim or an adjudication application – jurisdictional differences

All contractors doing construction work or providing goods or services as part of construction work are entitled to make a progress claim under the security of payment legislation. The security of payment legislation aims to give fair and timely remuneration for construction work, this means that it requires prompt response times.

Generally, under the security of payment legislation if you fail to respond to a payment claim in time, you will be liable to pay the claimed amount. Failure to respond in a timely manner may lead to a successful claim against you. It is paramount that individuals are aware of the required response time under the security of payment legislation to ensure compliance.

The security of payment legislation varies between each jurisdiction. We have briefly summarised the time periods for responding to claims below:

Jurisdiction Timer to response to Payment Claim Time to submit an Adjudication response
NSW (Building and Construction Industry Security of Payment Act 1999) 10 business days after the payment claim has been served or when required under the contract

(s14)

5 business days after receiving the adjudication application or 2 business days after serving notice of an adjudicator’s acceptance of the application

(s20(1))

Queensland  (Building Industry Fairness (Security of Payment) Act 2017) 15 business days after the payment claim has been served or when required under the contract

(s76)

Within the later of the following: 10 business days after receiving the adjudication application or 7 business days after receiving notice of the adjudication’s acceptance of the application

(s83)

ACT (Building and Construction Industry (Security of Payment) Act 2009) 10 business days after the payment claim is given to the respondent or the time required by the contract

(s16(4)(b))

Any time before the later of:

7 business days after the respondent receives the adjudication application or 5 business days after receiving the adjudicator’s acceptance of the application

(s22(1))

Victoria (Building and Construction Industry Security of Payment Act 2002) Within the time required under the contract or within 10 business days after the payment claim is served

(s15(4)(b))

5 business days after receiving a copy of the adjudication application or 2 business days after receiving notice of an adjudicator’s acceptance of the application

(s21(1))

South Australia (Building and Construction Industry Security of Payment Act 2009) Within 15 business days after the payment claim is served or within the time required by the relevant construction contract

(s14(b))

Any time within 5 business days after receiving the adjudication application or 2 business days after receiving notice of an adjudicator’s acceptance of the application

(s20(1))

Western Australia (Construction Contracts Act 2004) 14 days of receiving the payment claim

(s7(1))

Within 10 business days when the adjudication application has been served

(s27 (1))

Tasmania (Building and Construction Industry Security of Payment Act 2009) Within the time stipulated in the contract or 10 business days after the payment claim is served –  s19(2))

But, if the claim relates to a residential structure built on land and the respondent is the owner of the land and is not a building practitioner, a schedule is due 20 days after the payment claim is served s19(3)(a))

Within 10 business days after receiving a copy of the adjudication application or 5 business days after receiving notice of an adjudicator’s acceptance of the application

(s23(2))

Northern Territory (Construction Contracts (Security of Payments) Act 2010 Within 14 days after receiving the payment claim

(s6(2))

Within 10 working days after adjudication application has been served.

(s29(1))

 

However, it is important to note that the deadlines in the security of payment legislation are only the maximum timeframes provided by the legislation, your construction contract may have shorter deadlines. To ensure you are not caught off guard, you should be aware of the response time required in your construction contract, if applicable, and under the relevant security of payment legislation in your jurisdiction.

If you have any questions on your obligations and rights under the security of payment legislations, please do not hesitate to contact Morrissey Law + Advisory.

Disclaimer: This publication by Morrissey Law & Advisory is for general information and commentary only and should not be considered or relied upon as legal advice. Formal legal advice should be sought in relation to any matters or transactions that may arise in relation with communication.