| Payment Schedule served flowchart
|Payment Schedule NOT served flowchart|
The procedures and timeframes which apply for adjudication under the legislation vary based on whether the claimant has served a valid payment claim and, in reply, received a valid payment schedule (response).
The Act's procedures remain the same to this point. Therefore either flowchart can be followed until the processes diverge based on whether the respondent has or has not provided a valid payment schedule to the claimant. Therefore information on reference dates and preparing the payment claim is the same regardless of which flowchart is selected.
The respondent who fails to provide a payment schedule must be given a second opportunity to provide one. If they fail a second time, the Act effectively punishes the respondent by denying them the right to participate in the adjudication process. This results in the two different procedures.
Adjudicate Today has prepared two simple flowcharts to explain the procedures.
- Procedure 1 – Respondent serves a valid payment schedule within 10 business days after receipt of the claimant’s payment claim
A valid payment schedule has been served when a claimant provides a payment claim to a respondent and the respondent provides the claimant with a payment schedule within 10 business days of receipt of the payment claim. (Note: Service by the respondent of a payment schedule after 10 business days renders the payment schedule invalid – go to procedure 2).
The claimant seeks adjudication because either there is a dispute over the respondent's reasons for withholding some or all of the claimed amount; or the claimant has accepted the payment schedule but the respondent fails to pay the scheduled amount by the due date of payment.
The payment schedule served flowchart describes how to proceed in these circumstances.
- Procedure 2 – Respondent does NOT serve a valid payment schedule within 10 business days after receipt of the claimant’s payment claim
When a respondent fails to serve a valid payment schedule within 10 business days after receipt of the claimant’s payment claim, the Act requires the claimant send the respondent a notice under section 18(2). The effect of this notice is to provide the respondent with a second opportunity to serve the claimant with a payment schedule; however within the shorter period of 5 business days.
Once the claimant serves the section 18(2) notice, there are two mutually exclusive possibilities. Either the respondent provides or does not provide a valid payment schedule within 5 business days after receipt of the claimant’s notice.
The payment schedule not served flowchart describes both the procedures and timeframes of serving the section 18(2) notice and how to proceed to adjudication if the respondent again fails to issue a valid payment schedule.
(*Note: If the respondent now serves a valid payment schedule – this must be within 5 business days after receipt of the claimant’s notice under section 18(2) - the procedure reverts to that described in the payment schedule served flowchart [procedure 1]).