Security of Payment Definitions Victoria
These definitions summarise and simplify what are often complex provisions under the Act. The definitions are not necessarily exhaustive and should not be relied on in the event of a dispute. Detailed definitions are contained in the Act.
"Adjudication Application" is an application made by a Claimant to Adjudicate Today or other ANA for adjudication of a payment dispute under a construction contract. In order to be valid strict timeframes must be followed [sections 4 & 18].
The staff of Adjudicate Today will assist parties in complying with the procedures and timeframes of the Act but, they must be neutral and independent of the parties. They can't help a party address the merit issues of the payment dispute.
"Adjudicated Amount" is the amount of the progress payment, if any, to be paid by the respondent to the claimant [section 4] after an adjudication.
"Adjudication Certificate" is a certificate provided by Adjudicate Today or other ANA on application by a Claimant when the Respondent fails to pay the whole or any part of the adjudicated amount in a determination [sections 4 and 28Q].
"Adjudication Response" is the response of a Respondent to the Claimant's adjudication application. In order to be valid strict timeframes must be followed [sections 4 & 21)].
"Business Day" is any day other than a Saturday, Sunday or public holiday [section 4].
"Claimant" is a person who has carried out construction work, or suppled related goods and services, and is or claims to be entitled to a progress claim under a construction contract [sections 4 & 14].
"Claimed Amount" is the amount of the progress claim that the Claimant claims is payable [sections 4 & 14]. "Construction Work" is work defined in section 5 of the Act. The construction work must be carried out in Victoria after 29 March 2007. The Act does not apply to domestic building work except when the owner is in the business of building residences.
"Determination" is the Adjudicator's decision.
"Due Date" is the date on which a progress claim becomes due and payable either by virtue of a valid contract provision or if there is no such valid provision, 10 business days after the payment claim is made [sections 4 & 12(1)].
"Excluded Amount" is an amount that cannot be included in a payment claim or an adjudicated amount [sections 4 & 10B].
"Intention to Suspend Work" means the right of a Claimant to suspend construction work or the supply of related goods and services. This right arises on the Respondent's failure to provide a payment schedule and claimed amount by the due date [section 16]; or provision of a payment schedule but failure to pay the scheduled amount by the due date [section 17]; or failure to pay an adjudicated amount [section 27]. The notification to suspend work will be in writing and provide 3 business days notice.
"Optional Adjudication" or "Section 18(2) Notice" is a notification that the Claimant has not received the payment response within the time allowed by the Act or the claimed amount and that the Respondent has 2 business days in which to serve a payment schedule or pay the payment claim in full before the Claimant applies for adjudication [section 18(2)].
"Payment Claim" is a claim for a progress payment under a construction contract. It must identify the construction work or related goods and services and the amount that the Claimant claims to be payable. In order to be a valid claim under the Act it must also state that "This is a payment claim made under the Building and Construction Industry Security of Payment Act 2002 Vic" [section 14(2)].
"Payment Schedule" is the response served by a Respondent to a payment claim. It must identify the payment claim to which it relates and state the amount of the payment claim, if any, that the Respondent proposes to make [section 15].
"Progress Payment" is a payment to which a person is entitled including a "milestone" payment, a single or one-off payment or the final payment for construction work or supplying related goods and services [sections 4 & 9].
"Reference Date" is either the time for making progress claims as stated in the contract, or if the construction contract does not state the times, then section 9 of the Act applies.
"Related Goods and Services", in relation to construction work, includes materials, components, plant or material forming part of, or for use in connection with, the construction of any building, structure or work; and services including the provision of labour, professional services and related goods and services [sections 4 & 6].
"Respondent" is a person who has received a valid payment claim and is liable, or may be liable, to make a payment under a construction contract [sections 4 & 15] or for related goods or services.
"Review Adjudication Application" is an application under section 28B by the respondent or section 28C by the claimant for a second adjudicator to review the determination of an earlier adjudicator.
"Scheduled Amount" is an amount of money that the respondent proposes to make in response to a payment claim. If the scheduled amount is less than the claimed amount, the schedule must state why the scheduled amount is less and, if it is less, the respondent's reason for withholding payment [section4 & 15].