NSW: Payment Schedule Served - Claimant NOT Paid
Despite the claimant accepting the payment schedule, the respondent may fail to pay the scheduled amount by the due date for payment.
In such circumstances, the claimant can:
- Apply in writing to Adjudicate Today for adjudication of the full claimed amount regardless of whether the claimant was prepared to accept a lesser scheduled amount. The adjudication application must be made to Adjudicate Today within 20 business days of the due date for payment; or
- Sue in court or commence any dispute resolution process permitted by the construction contract; and
- Give notice of intention to suspend work on giving 2 business days' notice. Further details are provided here.
One common reason given for not paying is "I was not paid and will pay you when I am paid". This excuse is illegal under the Act.
The right to make an adjudication application or to suspend work only arises after the due date for payment has passed. A common reason for an adjudication application not being properly made is that the claimant gives notice of adjudication either too early or too late because they have wrongly calculated the due date for payment. We have prepared a flowchart to assist parties calculate the due date for payment under a contract. Click here to go to the due date for payment flowchart.
Please move to the next step on the NSW flowchart "Claimant has 20 business days from due date for payment to prepare and serve adjudication application on Adjudicate Today and Respondent".