The process

Step by step

The essence of the process can be summarised into 11 fundamental steps that produce your progress payment.

1. 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.

If you are unsure whether or not your claim is valid contact us and seek advice before making a claim under the act.

2. Payment Schedule

The client (now the respondent) must reply to that claim within a determined period of time giving the amount that is to be paid. When and if the amount is less than the amount claimed then all reasons for this difference must be given.

If they do not respond with a schedule within the required time the whole amount becomes payable and an application can be made to have the claimed amount become a judgment debt, without any court proceedings.

3. Claimant Then Decides

This is the critical point as claimant gets to choose whether they accept the amount and the reasons for any deductions to the claim or if not, they have a very clear course open to them to have the respondents reasons independently assessed and determined under the Security of Payments Act.

4. Adjudication Application

Should the claimant choose to challenge the respondent’s reasons they are able to apply for adjudication (go to application page). This must be done within 10 days of the payments schedule being received.

5. Adjudication Response

After receiving a copy of the adjudication the respondent has the right to reply and expand on the reasons given in the Payment schedule.

6. Adjudication

After the (ANA) has appointed the adjudicator and all the relevant documentation has been received, the adjudicator will assess the information before him. He may choose to hold a conference between the parties, carry out an inspection or ask for further documentation. However given the time constraints under the legislation it is unusual for this to occur.

7. Determination

The adjudicator will make a determination usually well within the period allowed under the act, that is 10 days after the adjudication application. The determination will state decisively and clearly the amount of the progress payment together with the reasons for the decision.

8. Receiving Your Payment

The determination will specify a date for payment, which is usually within 4 days of the adjudicator’s decision. 9 times out of 10 you will receive your payment within this period.

9. Cost of Adjudication

Generally the ANA will require that the cost of the adjudication be paid for before the adjudicator's fee is paid. Should the respondent choose not to pay the proportion determined by the adjudicator then the claimant can pay the amount due to release the decision. In this case the respondent becomes liable for the costs determined.

10. What if the Respondent Ignores the Determination

Occasionally the respondent may not pay as directed by the adjudicator. Should this occur the claimant would apply to the ANA for an Adjudication Certificate. The certificate covers the total of the determination plus any costs paid by the claimant. The certificate can be redeemed at the appropriate court as a Judgement debt. Upon serving the Judgement debt and required documents the respondent has 21 days to pay the full amount or the company may be wound up or an individual made bankrupt.

11. Can the Respondent Appeal the Decision?

No, the adjudicator's decision is final, although he or she may correct the determination, if needed. The only course of action open to the respondent is to pay the full adjudicated amount into a court trust on behalf of the claimant, where it is held until any civil proceedings related to the claim are completed, when it is paid in full.

It is extremely rare that the respondent will choose to sue the claimant, as the likelihood of them not only losing the case but also having to pay the legal costs of the defendant, would be high.