The Act
Key sections of the Act
8 Rights to progress payments
This section guarantees the right of all to make a claim for works carried out at least every month
regardless of what may be in the contract.
9 Amount of progress payment
If there are no specific details in the contract to value the amount of the
progress payment the value is to be determined based on the value of work
carried out or undertaken to be carried out.
10 Valuation of construction work and related goods and services
This section is the key clause in determining how an adjudicator may value
the works carried out. There is some devil in the detail here that can become
very important in getting the true value of the work underway to be justified in a claim.
11 Due date for payment
Determines the date for payment and interest rates that may apply to outstanding payments
12 Effect of "pay when paid" provisions
No more tying payments or performance to other parties. The only contract
that matters is the one that relates to the claim.
13 Payment claims
Details how to make a progress claim under the act, regardless of what the
contract may demand.
14 Payment schedules
Requires the other party to respond to a payment claim within 10 days
and if the scheduled amount is less than the claimed amount they must supply
all reasons.
15 Consequences of not paying claimant where no payment schedule received
If no payment schedule is received the whole amount of the claim becomes
due and the claimant can apply for adjudication to recover that amount.
16 Consequences of not paying claimant in accordance with payment schedule
If the amount paid is not as per the scheduled amount the claimant may apply
for adjudication to recover the unpaid amount.
17 Adjudication applications
The adjudication is the vehicle that allows the claimant to present the
reasons ( and all relevant documentation) that may satisfy the adjudicator they
should be paid the amount they claim they are due. This section also details
requirements of to achieve a valid adjudication application, so that the process
may successfully proceed.
20 Adjudication responses
The respondent gets the opportunity to respond to the application submission.
However they are not entitled to bring up any reasons for not paying the claimed
amount.
21 Adjudication procedures
This section details the boundaries that the adjudicator may operate within.
Note there is now allowance for legal representation should any conferences be
called.
22 Adjudicator's determination
The adjudicator is allowed to consider the act, the contract, the payment
claim, the payment schedule and all submissions. The adjudicator must determine
the value of any construction work where this is in dispute with regard to the
progress payment. The adjudicator may correct any accidental slips or omissions,
clerical mistakes or defects of form should they become aware of such an occurrences.
23 Respondent required to pay adjudicated amount
The respondent will be required to pay the claimant the adjudicated amount
within 5 days of the determination.
24 Consequence of not paying the claimant the adjudicated amount
Should respondent not pay the adjudicated amount, the claimant can suspend
work without any consequence and ask for an adjudication certificate from the ANA.
25 Filing of adjudication certificate as judgment debt
The adjudication certificate is the equivalent of a judgement debt issued
by any court. The respondent is not entitled to bring any cross claim, raise
any defence in relation to the construction contract or most importantly challenge
the adjudicator's determination. Should the respondent commence any proceedings
they must pay to the court the determined amount until the completion of the
proceedings.
34 No contracting out
No construction contract can exclude the operation of any section of the Act, ever.
