WA: Respondent Does NOT Serve Payment Schedule within Time

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

The payment schedule must be provided to the claimant during normal business hours at the claimant's ordinary place of business or in accordance with the Electronic Transactions Act 2011 section 14. Your lockbox with Adjudicate Today may be used by account holders.

The payment schedule must be provided to the claimant within the time specified by the construction contract or 15 business days after receipt of the payment claim, whichever time expires first. Unfortunately many respondents make the mistake of leaving their response until after the fifteenth business day in the belief that they have complied with the Act. They have not. Provision of a payment schedule on business day 16 means the payment schedule is invalid and, should the claimant wish to apply for adjudication and issue a second opportunity s 28(2) notice, the payment schedule will need to be provided again.

We recommend that a record of the time, date and manner of service on the claimant be kept. A claimant may deny receipt of the payment schedule or claim receipt after the expiry of 15 business days (or such shorter period provided by contract). In this case, the respondent must be able to evidence the date of service.

What happens if the respondent does not provide a payment schedule?

If the respondent does not pay the full amount by the due date for payment then the claimant can:

• Apply in writing to Adjudicate Today for adjudication of the claimed amount. However, before making the adjudication application the claimant must within 20 business days after the due date for payment, give the respondent a second opportunity s 28(2) notice to provide a payment schedule. This time, the respondent has just 5 business days to comply; or
• Sue in court or commence any dispute resolution process permitted by the construction contract; and / or
• Give notice of intention to suspend work.

Please move to the next step on the WA flowchart by selecting either "Full or any part of scheduled amount NOT paid by Due Date for Payment" or "Full Payment made by Due Date. Payment Process under the Act complete" depending on the circumstances.