Security of Payment and Adjudication in Victoria
To make a claim under the Victorian Building and Construction Industry Security of Payment Act 2002, the claimant serves a payment claim on the party liable to pay for construction work or related goods or services (the respondent) under a construction contract. If a written response to the payment claim (the Act calls this a payment schedule) is not received within 10 business days, the Act requires the claimant provide the respondent with a second opportunity to respond. As the Act provides for different timeframes and notifications depending on actions of the respondent, particular care needs to be taken by the claimant to follow the correct steps.
Our flowchart shows all the possible options available to claimants and respondents. In any particular claim, only some of the steps apply. Pink background on the flowchart describes the steps where the respondent fails to serve a payment schedule in time and blue where it is served within time. Light yellow background describes the adjudication and enforcement process.
The flowchart is interactive. Moving your mouse over each box in the flowchart provides brief details. Clicking in the box provides detailed information about the step. Clicking in the aqua flowchart heading immediately below provides a brief overview of the Act. This is where you should start if not previously involved with adjudication.
We recommend that you download and print the flowchart, preferably in colour. Keep it handy and tick and date each step as you go - this will prove most helpful.
If you have any questions about how the Act works and what parties need to do to comply with it, our six highly trained directors and staff are available to answer questions. We provide this advice for free and without obligation.