Claims and Contracts
What is a valid claim?
A valid claim is made under the Act by the supplier of goods and
services (the Claimant). The claim is made with reference to the date nominated in the contract or
if not clear with respect to the last day of the month that the work began.
The claim must:
Identify the works or services to which the progress payment relates.
Indicate the amount of the progress payment.
State that the claim is made under the Act.
Before you make a claim contact us for a free assessment as to its validity
and also our view as to the chances of success in making your application.
So if you think you may need to use the adjudication process to force a progress
payment we strongly advise that you contact us and seek advice as how
best to format your claim and when to submit it. Otherwise you may find the claim is not valid in which
case you will not be able to make an application.
Claims under the Act
When making a claim under the Act, bear in mind that two claims are
operating simultaneously:
1. A claim in accordance with the contract.
2. A claim as allowed under the Act.
The relevence being that while a claim may not be valid under the contract
it will be valid under the Act and considered accordingly.
What is a construction contract
A construction contract means a contract or other arrangement under which one party undertakes to carry out construction work, or to supply related goods and services, for another party.
Verbal or written
A contract is simply another way of saying an agreement. The Act applies to any construction contract, whether written or oral, or partly written and partly oral or otherwise implied. The "construction contract" may be defined by a few spoken words or may be presented by a complex collection of documents needing to be transported by forklift.
Complex contracts
All contracts (lump sum or schedule of rates) are open to a determination by the adjudicator
under the Act regardless of the content of any clause to the contrary. The Act cannot be
contracted out by any construction contract. Even with complex contracts separate collateral
contracts can evolve that will allow valuation of works outside the terms of the main contract. All
documentation exchanged in the construction process may or may not form part of the original
contract or a subsequent contract. Nevertheless it may well become relevant documentation
in the event of an adjudication.
Contractual disputes do not prevent applications under the Act. Rather, the Act is a device
to procure a progress payment despite the contractual dispute.
Don't let the threat of heavy clauses of the contract prevent you from having us assess the
reasons for non payment.
The Act creates multiple opportunities to have onerous contractual
conditions considered, adjudicated and determined.
