Vic Respondent Prepares Schedule

IMPORTANT: The information below is in relation to payment schedules. If you are responding to a performance security claim, please click here for information about performance security schedules.

IGNORING A PAYMENT CLAIM WITHOUT INTENTION TO PAY IN FULL BY THE DUE DATE FOR PAYMENT MAY HAVE SERIOUS FINANCIAL CONSEQUENCES.

Who is a respondent?

A respondent is a person who has received a payment claim under the Act.

What is a payment schedule?

A payment schedule is the notice in writing which must be served on the claimant if the respondent does not intend to pay the full amount of a payment claim by the due date for payment. This is regardless of whether the respondent believes that the claimant is or is not entitled to the claim or if the respondent denies being party to the contract. Assuming a payment claim is not valid, and therefore can be ignored, is risky. Click here for information about payment claims.

A valid payment schedule must comply with the below requirements

A payment schedule must:

• be in writing and addressed to the claimant;
• identify the payment claim to which it relates;
• identify the amount of payment that it is proposed be paid (the ‘scheduled amount’) (it may be "nil");
• if the amount that the respondent proposes to pay is less than the amount claimed in the payment claim, the respondent must indicate why the amount is less and reasons for withholding payment, including how the valuation of the withheld amount is calculated.

Download example of a Payment Schedule

Time frames and service

Payment schedules must be served within 10 business days after receipt of the payment claim, or a shorter period if provided by the contract. A contract provision seeking to extend the period for the provision of a payment schedule beyond 10 business days is void.

It is critical that respondents serve in accordance with strict legal requirements as to service.

What happens if a valid payment schedule is not served within time?

A respondent who fails to comply with the time frames for service of a valid payment schedule must be given a second opportunity to provide a payment schedule (s 18(2) Notice). If the respondent ignores the second opportunity, the Act denies the respondent the right to participate in the adjudication process.

Avoid pitfalls

Click here for a list of common reasons why respondents do not succeed in adjudication.

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