SA: Payment Schedule Served - Claimant NOT Paid

Schedule Served

Despite the claimant accepting the payment schedule, the respondent may fail to pay the scheduled amount by the due date for payment.

The due date for payment under the Act is the date on which a payment claim becomes due and payable either in accordance with the terms of the contract or, if there is no such valid provision, 15 business days after the payment claim is made.

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.

Please move to the next step on the SA flowchart being "Claimant has 20 business days from Due Date for Payment to prepare & serve Adjudication Application on Adjudicate Today & Respondent".

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