ACT: Payment Schedule NOT Served - Claimant NOT Paid
Failure to provide a payment schedule within 10 business days creates a statutory debt which the claimant is entitled to recover upon demonstrating the work was performed under a valid contract between the parties.
The claimant may now decide from three possibilities.
- Exercise the right to give notice of optional adjudication; or
- Make application to the court; and / or may
- Suspend work on giving 2 business days notice.
Exercise the right to give notice of optional adjudication
Most claimants will chose this avenue as it avoids the risk of lengthy and protracted litigation.
Make application to the court
Failure to provide a payment schedule creates a statutory debt for the claimed amount which the claimant is entitled to recover independently of and irrespective of the terms of the construction contract.
Suspend work on giving 2 business days notice
Regardless of whether the clamant chooses adjudication or litigation, there is a statutory right to suspend work on giving 2 business days notice.
Please move to the next step on the flowchart" being "Claimant has 20 business days from Due Date for payment to prepare and serve 2nd opportunity Adjudication [s19(2)] Notice on Respondent re no Payment Schedule".