NSW Adjudication and Security of Payment Flowchart
To make a claim under the NSW Building and Construction Industry Security of Payment Act 1999, 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 time frames 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. Clicking once in any flowchart box provides brief details. Clicking on ‘Read More’ in the new box provides detailed information about the step. Clicking on ‘Close’ returns to the flowchart. Clicking in the orange 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.
Click here for the first step on the flowchart (and what you need to read next) being "Claimant prepares & serves Payment Claim on or from a Reference Date".
If you have any questions about how the Act works and what parties need to do to comply with it, our highly trained staff are available to answer questions. We provide this advice for free and without obligation.