Who can use it
Are you eligible?
Anybody who supplies goods or services that form part of a building as long
as the contract is not with the home owner. The Act does, though, cover
all work, materials and plant supplied by subcontractors, consultants and
suppliers to contractors who have contracts with such homeowners.
All other residential work involving investment properties, landlords, owners
corporations, developers, builders, contractors, subcontractors, consultants
and suppliers is covered by the Act.
No licence or insurance
Parties claiming under the act are not required to be licensed or insured, regardless of clauses in a contract to the contrary.
Show me who can apply
CONSULTANTS Architects,
Engineers, Hydraulic designers, Interior designers, Surveyors, Certifiers. Any
consultants who have contributed an intellectual content to the design or
form of the construction or building
TRADESMEN Cleaners,
Plumbers, Bricklayers, Landscapers, Tilers, Carpenters - any person involved in
the building process- written contract or not.
SUB CONTRACTORS Demolishers,
Excavators, Form workers, Wharf carpenters, Metalworkers, Electrical contractors,
Carpet layers, Installation contractors any company with a formal subcontract completed or otherwise.
FABRICATORS Kitchen
manufactures, Metal fabricators, Joinery shops, Window fabricators anyone
who has made something that ends up being part of a building, (whether permanent
or not)
SUPPLIERS - Brick suppliers,
Hardware Stores, Scaffolders, Plant Hirers, Communication Installations, Temporary
Installations or suppliers of any materials or goods that are used in
a construction process sold or hired.
Adjudication vs Court
The process of the act does not replace the court process, rather it works
parallel to and independently of that process. However most claimants will
generally find that they will receive their progress payment and the contract
works can be carried out - usually without loss and in the best interest of
both parties.
This is in direct contrast to the court process, which almost guarantees termination
of the relationship as a result of the cost and duration of the process. The
case inevitably outgrows the issues in dispute and a battle of principle evolves
where the only winners are the lawyers. It is our experience generally, provided
the claim and application are reasonable, that the contractual relationship,
while impaired, is reconciled and continues through to the end product required
under the contract.
The main advantages being
The Courts are no longer a place for
small business to seek relief.
The Claimant (or Payee) determines the
pace of the process as directed by the Act. The respondent can not delay proceedings
no matter what the reason.
Both parties get a fair opportunity to
present their position.
Determinations are made quickly, usually
within days of all submissions being received.
If the claimant is successful the respondent
is required to pay the claim within days.
The respondent has no alternative to
paying what is owed, unless he claims insolvency.
In our experience most claims have been
paid in full within 5 days of determination.
In the case where the claimant is successful
the respondent is required to pay the costs of the adjudication.
